The American investment bank Goldman Sachs announced on Tuesday that it had received an initial authorization from the Chinese authorities to form a wealth management joint venture with one of the country’s largest financial institutions, Industrial and Commercial Bank of China (ICBC) .
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Goldman Sachs will own 51% of the capital of the new company, which will combine its “investment and risk management expertise“With”ICBC’s solid reputation and unparalleled access to individuals and institutional clients across China“, Says a statement. Chinese financial markets are opening up more and more to foreign players and the authorities of the country, the second largest economy in the world, have gradually granted them more freedom in their activities in recent years.
Wall Street firms are flocking there. JPMorgan Chase was thus authorized to take a majority stake in its brokerage joint venture in China in December 2019, followed a few months later, in March, by Goldman Sachs and Morgan Stanley. Global asset management giant BlackRock also received a license in early May for a wealth management joint venture under its control in China, with China Construction Bank and Singapore sovereign wealth fund Temasek, according to the Wall Street Journal. The French group Amundi, allied with Bank of China, obtained a similar license in September.
70,000 billion dollars in assets in 2030
«China’s wealth management industry has grown on the back of rising household wealth and ongoing financial market reforms“, Said one of Goldman Sachs officials for the Asia-Pacific region (excluding Japan), Tuan Lam, in the press release. “This joint venture with a reputable Chinese financial institution will support our efforts to establish a leadership position in one of the largest wealth management markets in size and growth potential in the world.“, he added. According to Goldman Sachs, Chinese households will own more than $ 70 trillion in investable assets by 2030.
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