The Swiss private bank, which refers to Asia as its second home market, has boosted its capabilities in the region.

Julius Baer has agreed to buy a 5 per cent stake in Shanghai-based wealth manager Jupai Holdings.

Under the deal, Julius Baer will purchase 9,591,000 ordinary shares in Jupai at $1.83 per share. Chinese online media company SINA will also increase its stake in the wealth manager to 11.4 per cent.  

The private placement to both Julius Baer and SINA is worth an approximate $22.9 million and is expected to close this month. 

“Participating in Jupai's private placement will provide Julius Baer with valuable insight into one of the most successful players in Chinese onshore wealth management and further strengthen our expertise in China, whilst providing Jupai access to our global investment know-how,” said Boris Collardi, chief executive of Julius Baer.

Jianda Ni, the co-chairman of the board of directors and CEO of Jupai, said the acquisition will allow Jupai to further diversify its offering and help the company to meet demand for overseas asset allocation.

“In addition, Julius Baer's valuable experience in the wealth management industry will help to further improve the expertise of Jupai's financial advisors,” he said.

Jupai, which is listed on the New York Stock Exchange, provides wealth management and advisory services to high net worth individuals in China.