U.S. asset manager BlackRock and Singapore sovereign investor Temasek agreed to set up a wealth management joint venture in China with state-owned financial giant China Construction Bank.
A memorandum of understanding was announced internally at BlackRock and CCB, according to a «Reuters» report citing unnamed sources and an internal notice.
The agreement will allow the American and Singaporean entity to take a majority stake in the newly formed wealth management joint venture. In addition, CCB has also established a partnership with BlackRock with regards to investment, asset management, risk management and fintech, the notice said.
The tie-up marks yet another move by Chinese authorities to make good on their commitment to open up the domestic financial industry following announcements made in mid-2019, particularly with regards to wealth management. Just yesterday, it was announced that Bank of China and Amundi would partner to form an onshore asset management joint venture.
