Strategy
Deutsche Bank Reportedly Mulls Chinese Wealth JV

A number of Western financial groups are trying to tap the fast-rising wealth of a new Chinese middle class.
Deutsche Bank
is talking to the wealth management unit of Postal Savings Bank
of China about building a new joint venture, a media report
says.
Germany’s largest bank wants to take a majority stake in the
wealth management venture with PSBC Wealth Management Co Ltd,
Caixin reported on 5 January, quoting unnamed sources.
Deutsche Bank didn’t comment in response to a request from
WealthBriefingAsia about the matter.
A number of Western financial groups are trying to tap the
fast-rising wealth of a new Chinese middle class, shrugging off
concerns about regulatory crackdowns and trade tensions with
countries such as the US. China has liberalised some of its
capital and investment market rules to encourage capital inflows.
Regulators in China have greenlit the establishment of several
wealth management joint ventures. For example, such a JV between
Amundi and BOC Wealth Management started in 2020. Other examples
include those of BlackRock and CCB Wealth Management, Schroders
and BOCOM Wealth Management, and CIBC Wealth Management and
Goldman Sachs.
The report added that UBS is understood to be mulling such a
wealth partnership with China Life Insurance Co.