China okays Goldman Sachs, ICBC joint wealth management venture

A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in the Manhattan borough of New York January 24, 2014. REUTERS/Lucas Jackson/File Photo

China‘s largest bank Industrial and Commercial Bank of China (ICBC) said on Tuesday its unit had received approval to set up a foreign-controlled wealth management firm with Goldman Sachs Asset Management.

The unit of U.S. banking giant Goldman Sachs Group Inc will offer a 51% funding contribution ratio, while the wealth management unit of ICBC will offer 49%, the Chinese bank said in a exchange filing.

The joint venture is “to create a world-class asset management business,” said Goldman Sachs in an emailed statement to Reuters, as it “will combine Goldman Sachs Asset Management‘s expertise in investment and risk management with ICBC‘s strong brand recognition and unparalleled access to retail and institutional clients across China.”

ICBC said it “will be beneficial to the bank’s provision of more diversified and professional wealth management services.”

The venture will develop a broad range of investment products for the Chinese market over time, including quantitative investment strategies, cross-border products and innovative solutions in alternatives.

China opened its giant financial sector to foreign companies last year as part of an interim trade deal with the United States signed in January.

U.S. fund giant BlackRock Inc received a business licence earlier this month for a majority-owned wealth management venture with a unit of country’s second largest bank China Construction Bank Corp (CCB) and Singapore state investor Temasek Holdings (Pte) Ltd.

Amundi has also set up a wealth management joint venture with Bank of China, and Schroders has applied to partner with Bank of Communications (BOCOM) in wealth management.

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), country’s top banking watchdog, said in March that Chinese regulators would welcome more foreign firms’ entry into China‘s financial sector, including the wealth management space.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.