Sun Life Financial, the Canadian asset management firm, has received regulatory approval to open an asset management arm in Beijing, China. 

The new unit will be managed by Sun Life Everbright Asset Management, a subsidiary of Tianjin-based Sun Life Everbright Life Insurance, alongside joint venture partners Sun Life Financial and China Everbright Group. It will be led by Yang Hua, who joined Sun Life Everbright as chief investment officer in June 2010. 

"We can't reveal specific targets for the investment business' growth potential and the number of customers, but with the growing size of the middle class in China, it is exciting to see the prospects and opportunities," said Yan Hu, senior advisor at Sun Life Financial. 

The announcement was concurrent with the hire of Kevin Strain as the new president of Sun Life Financial Asia, to replace Dikran Ohannessian, who is retiring. Strain will be based in the Hong Kong regional office and report to Dean Connor, president and chief executive. Sun Life Financial is responsible for the firm's insurance and wealth management businesses.

The new asset management firm takes advantage of China's "multi-dimensional" characteristics, the firm said, and is poised to explore other opportunities in pension and mutual fund sectors in the future. Sun Life Everbright is 50 per cent owned by China Everbright Group and 24.99 per cent owned by its Canadian parent Sun Life Assurance. The remaining 12 per cent or so is held by various shareholders.

The company also has operations in India, Indonesia, the Philippines and Hong Kong.