Goldman Sachs and ICBC have received preliminary approval for the establishment of a wealth management joint venture in mainland China.
The China Banking and Regulatory Commission granted preliminary approval for the joint venture which will include 51 percent ownership by Goldman Sachs Asset Management and 49 percent by ICBC subsidiary, ICBC Wealth Management Company.
«China’s wealth management industry has grown on the back of increased household wealth and continued financial market reform,» said Tuan Lam, a partner at Goldman Sachs Asset Management with responsibilities for client management across Asia Pacific ex-Japan.
New about Goldman Sach’s plans to form a wealth management joint venture with ICBC in China first emerged in January this year.
Product Focus
The joint venture will develop a wide range of products including, but not limited to, quantitative investment strategies, cross-border products and innovative alternative solutions, according to the bank.
The first products could be launched as soon as next year, pending final regulatory approval.
China Expansion
Goldman Sachs continues to expand in mainland China where it already has a five-year plan to double its workforce to 600 and is currently in the process of hiring 320, including 70 focused on investment banking coverage.
In December, it reached an agreement with Chinese partner Beijing Gao Hua Securities to buy its stake and effectively obtain 100 percent control of its mainland securities joint venture.
