Chinese regulators have approved a wealth management joint venture between Schroders and Bank of Communications to kick start operations in the mainland.
Schroders BOCOM Wealth Management has been approved by the China Banking and Insurance Regulatory Commission to commence business, according to a statement, effective yesterday.
The joint venture has a registered capital of 1 billion yuan ($158 million) and it includes a 51 percent stake from Schroders Investment Management and a 49 percent stake held by Bank of Communications Wealth Management.
The new firm will leverage Schroder’s group capabilities in big data for investment research and decision-making alongside multi-asset management expertise.
Wealth Management JV
Schroders BOCOM Wealth Management will become the third such joint venture owned by a Chinese and foreign firm approved for business.
Others that have also received licenses for operation include a JV between Blackrock, Temasek and China Construction Bank, one between Amundi and Bank of China, and another between Goldman Sachs and ICBC.
And more foreign banks are mulling an entry such as Deutsche Bank and BNP Paribas.
