BNP Paribas in Talks to Form China Wealth Management JV
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BNP Paribas’ asset management arm is reportedly in talks with a Chinese «big four» bank to form a wealth management joint venture in the mainland.
BNP Paribas is in talks with Agricultural Bank of China’s (AgBank) wealth unit to form a wealth management joint venture, according to a report citing unnamed sources.
BNP Paribas is expected to hold majority stakes in the joint venture.
BNP Paribas joins the likes of Blackrock, Goldman Sachs and other global financial institutions seeking to tap into China’s $19 trillion wealth management market.
French rival Amundi had initially discussed venture plans with AgBank but ultimately chose Bank of China as its partner.
AgBank and other major state banks face political pressure to form wealth management joint ventures, the report added, indicating China’s willingness to open up.
Within mainland China, BNP Paribas Asset Management already owns a Chinese mutual fund venture.
Questions & Answers
Q.Which Chinese bank is BNP Paribas reportedly in talks with for the joint venture?
Which Chinese bank is BNP Paribas reportedly in talks with for the joint venture?
BNP Paribas is reportedly discussing a wealth management joint venture with Agricultural Bank of China’s (AgBank) wealth unit.
Q.What stake is BNP Paribas expected to hold in the new joint venture?
What stake is BNP Paribas expected to hold in the new joint venture?
BNP Paribas is expected to hold a majority stake in the wealth management joint venture.
Q.Why are major Chinese state banks reportedly facing pressure to form these joint ventures?
Why are major Chinese state banks reportedly facing pressure to form these joint ventures?
AgBank and other major state banks are reportedly facing political pressure to form wealth management joint ventures, indicating China’s willingness to open up.
Q.Does BNP Paribas already have any operations within mainland China?
Does BNP Paribas already have any operations within mainland China?
Yes, BNP Paribas Asset Management already owns a Chinese mutual fund venture within mainland China.
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