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.