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Amundi-BOC wealth management China JV to begin operations

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A new joint venture in China between Amundi, Europe’s largest asset manager, and BOC Wealth Management, a subsidiary of the Bank of China, has received its license from the China Banking and Insurance Regulatory Commission and is now ready to begin operations from October.The Company will be the first foreign majority-owned company in China allowed to design and offer wealth management products.

 
On 20 December, 2019, the project of establishing the Company was approved by the regulator, signifying a key step in the opening of China’s banking sector ever since the Office of Financial Stability and Development Committee of the State Council announced Relevant Measures for Further Opening Up Financial Sector (11 Measures) on 20 July, 2019. 
 
An opening ceremony was hosted in Shanghai today in the presence of the Chairman of BOC Group, Liu Liange, the CEO of Amundi, Yves Perrier, the Chairman of BOC Wealth Management, Liu Donghai, and senior representatives from the municipality of Shanghai and the French authorities.
 
The Company is registered in Lingang New Free Trade Zone in Shanghai. Amundi holds a 55 per cent stake while BOC Wealth Management holds the remaining 45 per cent stake.
 
The objective of the Company is to bring first-class investment solutions to investors in China. It will be mainly engaged in public offerings and private placements of wealth management products and other asset management services.
 
The Company will primarily focus on the distribution of wealth management products to Chinese retail investors. It will first serve BOC customers and will also make its products available to other local distributors and digital platforms in China. In addition, it will progressively target institutional investors. Considering the depth of the wealth management market and its growth potential, the company expects a strong course of development.
 
The Company will provide a diversified range of new products with various maturities, both open and closed-ended, invested in liquid RMB assets. It will focus on “fixed income plus” and “multi-asset’ products with the objective of offering an attractive yield to investors while keeping a low to moderate risk profile. The products will benefit from Amundi’s asset allocation know-how and rigorous risk management processes and tools. The Company will leverage Amundi’s proprietary IT platform (ALTO), which will be adapted to the Chinese market and combined with the most advanced local tools.
 
The Company will also benefit from the support of BOC in terms of branding and distribution, both online and physical. It will bring state-of-the art services and reporting to distributors and clients and contribute to bolstering the advisory process and the financial education of customers.
 
The Company expects to launch its first products at the end of the year. Its management and its core team are already in place. The team combines members from Amundi, BOC and experienced talent from the Chinese market. Liu Huijun, from Bank of China and with 25 years of experience in the asset management, global financial markets and insurance industries, will chair the Board of Directors of the joint venture, while MBao Aili, with over 20 years of experience in the mutual fund industry, will be appointed General Manager.
 
Yves Perrier, Chief Executive Officer of Amundi, says: “Amundi is pleased that Amundi-BOC Wealth Management Company has received its license from CBIRC. The launch of the company is on track with our plan. We are proud to create the first JV of this kind with our partner Bank of China. This venture, combining the best of both groups, will enable Amundi to bring first class international investment capabilities and services to Chinese investors, and will leverage Bank of China’s experience and extensive distribution network. This new JV will accelerate Amundi’s development strategy in China, a country that we foresee as one of our major markets in the coming decade. We welcome the arrival of Mrs Liu Huijun and Mrs Bao Aili as Chairman of the Board and General Manager of the Company and we have full confidence in their ability to build and develop a great and successful company.”
 
Liu Liange, Chairman of Bank of China, adds: “The launch of China’s very first Joint Venture wealth management company by BOC and Amundi is an important manifestation of further opening up the country’s financial industry. It is conducive to bringing in the professional expertise from the leading global asset management firms and satisfying the diversified needs of investors by adding variety to the market entities and financial products. I hope the company will fully leverage its shareholders’ advantages in capacities and resources to share the broad growth opportunities in China’s wealth management industry. I look forward to the day our JV develops into a leading wealth management firm in China.”

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