A Goldman Sachs and ICBC joint venture has received China’s approval to begin wealth management operations on the mainland.
Goldman Sachs ICBC Wealth Management – a joint venture between the US investment bank and a wholly-owned subsidiary of Industrial and Commercial Bank of China (ICBC) -- has obtained approval from China Banking and Insurance Regulatory Commission (CBRIC) to begin operations, according to a statement ICBC filed to the Hong Kong Stock Exchange (HKEx) on Friday.
The joint venture was set up in mid-2021, with Goldman Sachs taking 51 percent stake, while the Chinese bank took the remainder.
China’s household wealth growth may spur more than 16 trillion US dollars of inflows to the wealth management market, Morgan Stanley estimated in an October 2021 research report. Many of China’s high net worth (HNW) individuals are first-generation entrepreneurs needing comprehensive financial planning advice, the report said.
