New Sino-foreign wealth management JV launched in Shanghai
China's third Sino-foreign wealth management joint venture has landed in Shanghai.
Schroder BOCOM Wealth Management, with registered capital of 1 billion yuan (US$158 million), received regulatory approval from the China Banking and Insurance Regulatory Commission in January. It commenced business in Jing'an District on Monday.
The world's leading asset management company Schroder holds a 51 percent stake, and China's BOCOM Wealth Management, a wholly owned subsidiary of the Bank of Communications, holds 49 percent of shares. The two companies hope to increase the overall competitiveness of the asset management industry in China.
Six other leading financial institutions began doing business in Shanghai on Monday, including the first Chinese branch of First Abu Dhabi Bank (FAB), the UAE's biggest bank by assets.
Wu Qing, Shanghai's deputy mayor, said the opening of Schroder BOCOM Wealth Management and FAB's Shanghai branch are two major projects displaying the city's financial opening. In particular, the FAB project is the latest in the "Belt and Road" initiative.
Jing'an serves as a finance highland in Shanghai, home to more than 500 financial entities, including 79 securities firms, 55 banks and 142 private equity firms. Notably, eight of the top ten private equity firms on the 2021 PEI300 list have offices in Jing'an.