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Schroders Win Regulatory Green Light For Shanghai JV

A number of foreign firms have established JVs to tap into the world’s second-largest economy and the structure remains one of the main ways in which Western organisations are able to do business in China.
UK-listed Schroder
Investment Management has won regulatory clearance to set up
a joint venture in Shanghai, an example of how some Western firms
continue to push into the mainland China market.
The JV, in which Schroders holds a 51 per cent stake, is called
Schroder Bank of Communications Wealth Management Co. The
proposed entity is the latest collaboration between Schroders and
Bank of
Communications since the establishment of BOCOM Schroder Fund
Management Co, in 2005.
“The Chinese market represents a significant opportunity for
Schroders, entailing the world’s second and third largest equity
and bond markets respectively. As a result of our focus on China,
we have been able to support both overseas investors looking to
diversify into China and Chinese institutions keen to invest in
the rest of the world,” Peter Harrison, Schroders Group chief
executive officer, said.
Schroders said it will work with BOCOM Wealth Management to set
up Schroder BOCOM Wealth Management and will announce more
details in due course.
A number of foreign firms have established JVs to tap into the
world’s second-largest economy. Union Bancaire Privée, the
Geneva-based private bank, last November announced that its
wholly foreign-owned enterprise in China, UBP Overseas Investment
Management (Shanghai), had partnered with Idinvest Partners, a
European private equity firm and a subsidiary of global
investment company Eurazeo. It was reported late last year that
Julius Baer plans to create a majority-owned China JV. Amundi,
the European asset management giant, and China’s BOC Wealth
Management, won a licence to operate a joint venture in China
last year. A Cerulli Associates report
has pointed out the growth potential of such ventures.
Credit Suisse
aims to win full control over its securities venture in China
amid plans to double its headcount and revenue, the bank’s
Asia-Pacific chief executive has been quoted as saying.