Schroders said on Monday it had received Chinese regulatory permission to form a majority-owned wealth management venture with a unit of Bank of Communications (BOCOM), the country’s fifth biggest lender.
The announcement came days after Schroders applied to set up a wholly-owned mutual fund business in China, where the government fully opened up its giant financial sector to foreign companies last year.
“Schroders has long been committed to the Chinese market,” Peter Harrison, Schroders Group Chief Executive Officer, said in a statement.
“The Chinese market represents a significant opportunity for Schroders, entailing the world’s second and third largest equity and bond markets respectively.”
The new wealth management venture, based in Shanghai, will be 51% controlled by Schroder Investment Management Ltd, and 49% owned by BOCOM Wealth Management Co.
It’s the third wealth management venture in China. Amundi partnered with Bank of China, while BlackRock and Temasek Holdings (Pte) Ltd are setting up a similar venture with China Construction Bank.