Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

BNP Paribas in wealth management JV talks with China's AgBank -sources

Stock Markets Sep 02, 2021 04:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The BNP Paribas logo is seen at a branch in Paris, France, February 4, 2020. REUTERS/Benoit Tessier

SHANGHAI (Reuters) -BNP Paribas' asset management arm is in talks to form a wealth management venture with a unit of Agricultural Bank of China (OTC:ACGBF) (AgBank), sources said, as the French firm pursues a bigger slice of China's $19 trillion market.

China further deregulated its financial markets in 2019, allowing foreign asset managers to form majority-owned wealth management ventures with local banks. Foreign expertise can help Chinese lenders grow their investment capabilities as they phase out risky shadow banking businesses.

Two sources with direct knowledge of the talks told Reuters that the investment management arm of BNP Paribas (OTC:BNPQY) will hold a majority stake in the planned venture with AgBank's wealth management subsidiary.

BNP Paribas declined to comment. AgBank, China's third biggest lender by assets, did not immediately return an emailed request for comment.

French rival Amundi and U.S. fund giant BlackRock (NYSE:BLK) have already formed Chinese wealth management ventures, while Schroders (LON:SDR) and Goldman Sachs (NYSE:GS) are following suit.

Meanwhile, JPMorgan (NYSE:JPM) Asset Management has partnered with China Merchants Bank's wealth management unit.

BNP Paribas Asset Management is in talks to form the venture with AgBank's Agricultural Bank of China Wealth Management Co, the sources said, without giving financial details.

BNP Paribas AM already owns a Chinese mutual fund venture, and the new alliance would give it access to AgBank's massive retail customer base.

"Getting the wealth management license is worth the effort," a source with direct knowledge of the talks said.

Amundi initially discussed venture plans with AgBank, but eventually chose Bank of China as its partner, another said.

AgBank and other major state banks face political pressure to form wealth management JVs, sources said, an indication of China's willingness to open up which could help Chinese banks build globally competitive asset management businesses.

BNP Paribas AM manages 489 billion euros ($579 billion) in assets, and offers a comprehensive range of active, passive and quantitative investment solutions. It's also a major player in sustainable investing, which Beijing is aggressively promoting.

AgBank's wealth management unit, set up in July 2019, had 1.1 trillion yuan ($170.24 billion)in wealth management products at the end of June.

China's asset management market will grow to 210 trillion yuan in 2025, from 122 trillion yuan at the end of 2020, China Everbright (OTC:CHFFF) Bank and Boston Consulting Group estimate.

($1 = 6.4613 Chinese yuan renminbi)

($1 = 0.8447 euros)

BNP Paribas in wealth management JV talks with China's AgBank -sources
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email