Allianz is reportedly furthering its push into mainland China’s financial sector with ongoing discussions to set up a majority-owned asset management joint venture with a local lender.
Allianz Global Investors is in talks with Chinese banks, including Industrial Bank and China CITIC Bank, to set up a majority-owned asset management JV, according to a «Reuters» report citing unnamed sources, to enter that $4.3 trillion wealth market.
Despite the interest, the accelerated race to set up asset management joint ventures by the likes of Blackrock or Goldman Sachs has led to limited potential partners remaining in the market.
«The competition to win over a local bank intensified this year as not many large banks are left for foreign firms to grab,» said an anonymous source, adding that at least one other foreign asset manager is also in joint venture discussions with CITIC Bank.
Multi-Pronged Push
Separately, Allianz also has exposure to other parts of the financial sector in mainland China including a 49 percent stake in a fund management joint venture with China Pacific as well as a life insurance and insurance asset management business which received regulatory approval in July last year.
According to the report, the German insurer is seeking to form a fully-owned fund management business with global consultancy Mckinsey & Company hired for feasibility studies. This follows a failed attempt to buy out its partner China Pacific Insurance in the fund management venture.
