The investment arm of Allianz has been approved to become the first foreign asset manager to own a stake in China’s pension insurance company.
Allianz Global Investors has received regulatory approval for investment in a 2 percent stake in Guomin Pension & Insurance Company, according to a statement. This makes it the first foreign asset manager to own a stake in the pension insurer.
AllianzGI has been approved to subscribe to around 228 million newly issued shares in Guomin Pension worth approximately 284 million Chinese yuan ($39 million) which will result in an increase in the pension firm's registered capital to around 11.4 billion yuan.
«China’s pension market is growing fast. By drawing on our decades of international markets experience, along with our extensive expertise in areas including risk management, product development and asset allocation, we think we can help Guomin Pension deliver innovative solutions that best meet the country’s retirement needs,» commented AllianzGI CEO Tobias Pross.
Third Pillar
The so-called third pillar is the most significant reform in China’s retirement program which opens the market to private individual pensions. Launched in 2018 as pilot schemes, China’s third pillar pension system is projected to grow to 4 trillion yuan by 2030 and may reach 7 trillion yuan if additional reforms are implemented, according to a report by KPMG China and ASIFMA.
Formed in 2022, Guomin Pension was jointly launched by China's large financial institutions to promote the development of the country's private pension market.
