ICBC, Goldman Sachs Wealth Management JV Gets Regulatory Nod
May 25 2021 - 5:16AM
Dow Jones News
By Clarence Leong
Chinese regulators have approved a wealth management joint
venture between Industrial & Commercial Bank of China Ltd. and
Goldman Sachs Group Inc., as the country further opens up its
lucrative financial markets to foreign banks.
An ICBC unit will contribute 49% of the venture's funding, while
Goldman Sachs Asset Management will contribute the rest, according
to a filing by ICBC to the Hong Kong stock exchange on Tuesday.
ICBC said the venture will help it provide more diversified and
professional wealth management services, and improves the bank's
ability to serve the real economy.
Goldman Sachs has sought to deepen its investment in the world's
second-largest economy. Last December, it applied to take full
control of Goldman Sachs Gao Hua Securities Co. by acquiring the
49% share of the venture it didn't own. Goldman Sachs was the first
global bank to seek full ownership of its securities business in
China.
Other global financial firms have been moving to expand wealth
management offerings in China's fast-growing financial market.
Earlier this month, BlackRock Inc., the world's largest money
manager, received the go-ahead from Chinese regulators to start a
wealth management business in the country. In March, a unit of
JPMorgan Chase & Co. agreed to buy a 10% stake in China
Merchants Bank's wealth management unit for around $410
million.
Write to Clarence Leong at clarence.leong@wsj.com
(END) Dow Jones Newswires
May 25, 2021 06:01 ET (10:01 GMT)
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