BNP Paribas is the latest global financial firm to expand its mainland China business with the establishment of an asset management joint venture.
BNP Paribas has received initial approval from the China Banking and Insurance Regulatory Commission (CBIRC) to set up an asset management joint venture with Agricultural Bank of China (AgBank), according to an exchange filing by the Chinese lender.
51 percent of the joint venture will be owned by BNP Paribas with the remainder owned by mainland China's third largest lender by assets. The new platform will be funded by BNP Paribas Asset Management and ABC Wealth Management, a wealth arm of AgBank.
Since 2019, China has been opening its financial sector to foreign players including access to its $4 trillion asset management market. Blackrock and Amundi have launched majority-controlled units in the mainland while other firms are also reportedly exploring opportunities such as Barclays and Allianz.
