# Exclusive-Allianz in talks with banks for China asset management venture -sources Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-23 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Allianz SE in Talks with Chinese Banks for Asset Management Venture in China Meta Description: Allianz SE is discussing plans to establish a majority-owned asset management venture in China, tapping into the country's $4.3 trillion wealth products URL: https://financedigest.com/exclusive-allianz-in-talks-with-banks-for-china-asset-management-venture-sourceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-23t142309z3lynxmpei7m09hrtroptp4allianz-china-jv-1736815392699-compressed.jpg) By Samuel Shen and Selena Li HONG KONG (Reuters) – Allianz SE is in talks with Chinese banks to set up a majority-owned asset management venture in the world’s second-largest economy, two people with direct knowledge of the matter said, aiming to tap a $4.3 trillion market for wealth products. The German insurer’s main asset management arm, Allianz Global Investors (AllianzGI), has been holding discussions over the past few months with Industrial Bank and China CITIC Bank, among other lenders, the people said. AllianzGI is the latest foreign asset manager to seek a slice of China’s lucrative [wealth](https://www.financedigest.com/wealth-management-consultant.html "Wealth management consultant") management market. After China in 2019 allowed foreign companies to set up majority-owned wealth [management joint ventures with local banks’](https://www.financedigest.com/strategies-banks-use-to-manage-liquidity-risk.html "Strategies Banks Use to Manage Liquidity Risk") wealth units, BlackRock, as well as units of Goldman Sachs and Barclays have found or are working to find local partners to foray into this business. The rush, however, has led to doubts whether there are enough suitable local [partners for the asset managers](https://www.financedigest.com/exclusive-crypto-giant-binance-moved-400-million-from-u-s-partner-to-firm-managed-by-ceo-zhao.html "Exclusive-Crypto giant Binance moved 0 million from U.S. partner to firm managed by CEO Zhao") to team up with. The competition to win over a local bank intensified this year as not many large banks are left for foreign firms to grab,” said one of the people, adding that at least one more foreign asset [manager is also in joint venture talks with CITIC Bank](https://www.financedigest.com/how-effective-talent-management-could-disrupt-the-retail-banking-sector.html "HOW EFFECTIVE TALENT MANAGEMENT COULD DISRUPT THE RETAIL BANKING SECTOR"). AllianzGI said it is committed to the [China market but declined to comment on specific plans](https://www.financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exports.html "Dutch responds to US China policy with a plan to curb semiconductor tech exports"). Both the [sources declined to be named](https://www.financedigest.com/volkswagen-to-name-bentley-production-chief-as-new-cariad-head-sources.html "Volkswagen to name Bentley production chief as new Cariad head – sources") as they were not authorised to speak to the media. A news department [official at Industrial Bank](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") said he’s not aware of the talks. Citic [Bank could not be reached](https://www.financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigation.html "TD, other banks reach .35 billion settlements to end Stanford litigation") immediately for comment. The two banks’ [wealth management](https://www.financedigest.com/analysis-credit-suisse-collapse-threatens-switzerlands-wealth-management-crown.html "Analysis-Credit Suisse collapse threatens Switzerland’s wealth management crown") units had 1.8 trillion yuan ($263.20 billion) and 1.4 trillion yuan worth of assets, respectively, as of end-2021. FUND [MANAGEMENT UNIT](https://www.financedigest.com/sacyr-shortlists-four-bidders-for-its-service-waste-management-unit-expansion.html "Sacyr shortlists four bidders for its service, waste management unit – Expansion") Allianz’s China [expansion plan comes against the backdrop of a stuttering Chinese economy that narrowly avoided contracting](https://www.financedigest.com/4-questions-to-consider-before-embarking-on-a-contract-packaging-expansion.html "4 questions to consider before embarking on a contract packaging expansion") in the second quarter. Widespread COVID-19 lockdowns and a [property crisis took a heavy toll on consumer and business](https://www.financedigest.com/the-importance-of-property-care-looking-after-your-business.html "The Importance of Property Care: Looking After Your Business") confidence in the country, hurting wealth creation. Western [asset managers](https://www.financedigest.com/french-watchdog-fines-h2o-asset-management-executives-over-tennor-investments.html "French watchdog fines H2O Asset Management, executives over Tennor investments"), however, are betting on the long-term growth prospects of China’s financial sector. AllianzGI, which has 578 billion euros ($574.5 billion) in assets under management, is also pressing ahead with a separate plan to form a fully owned fund [management business](https://www.financedigest.com/5-practical-ways-to-manage-your-business-expenses.html "5 Practical Ways To Manage Your Business Expenses") in China, said the two people. It has [hired Mckinsey & Company](https://www.financedigest.com/two-thirds-of-companies-hiring-for-gdpr-reveals-robert-half-uk.html "Two-Thirds Of Companies Hiring For Gdpr, Reveals Robert Half Uk") for feasibility studies for this project, one of the sources said. China’s [fund management market](https://www.financedigest.com/market-turmoil-a-boon-for-trend-following-hedge-funds.html "Market turmoil a boon for trend-following hedge funds") is worth $3.7 trillion, according to official data. The insurer currently has 49% [stake in a fund](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") management joint venture with a unit of China Pacific Insurance. One of the sources said its plan to set up a separate wholly owned [business comes after its failure to buy](https://www.financedigest.com/ladbrokes-owner-entain-buys-sports-media-business-365scores.html "Ladbrokes owner Entain buys sports media business 365scores") out the partner. Allianz did not respond immediately to Reuters’ request for comment. Mckinsey declined to comment. AllianzGI in recent months began hiring operational [staff in preparation for setting up the wholly owned fund management](https://www.financedigest.com/edf-staff-shareholders-file-complaint-over-management.html "EDF staff, shareholders file complaint over management") unit, the people said. Besides the existing fund management joint venture, Allianz’s other businesses in China include [life insurance](https://www.financedigest.com/types-of-life-insurance.html "Types of Life Insurance") and insurance asset management which received regulatory approval in July last year. ($1 = 6.8388 yuan) (Reporting by Samuel Shen in Shanghai and Selena Li in [Hong Kong; Editing by Sumeet Chatterjee and Muralikumar Anantharaman)](https://www.financedigest.com/citadel-accelerates-hiring-push-in-hong-kong-and-london.html "Citadel accelerates hiring push in Hong Kong and London") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---