What’s New: Deutsche Bank is in talks with the wealth management unit of Postal Savings Bank of China on the creation of a new joint venture, Caixin learned from people familiar with the matter.
Deutsche Bank aims to take a majority stake in the wealth management venture with PSBC Wealth Management Co. Ltd., the sources said, adding that discussions are still underway with no agreement.
Deutsche Bank didn’t comment in response to a Caixin request.
The background: Global financial institutions have been racing to enter the vast wealth management market of the world’s second-largest economy since China opened the sector to foreign investors in 2019.
Chinese regulators have so far approved the establishment of four joint-venture wealth management companies. In September 2020, a wealth management joint venture between Amundi and BOC Wealth Management Co. Ltd. started business. A venture between BlackRock Inc. and CCB Wealth Management Co. Ltd. opened in May 2021.
A partnership between Schroders Group and BOCOM Wealth Management Co. Ltd. won approval in February 2021, followed by a venture between Goldman Sachs and CIBC Wealth Management. UBS Group is reportedly discussing a wealth management partnership with China Life Insurance Co.
Quick Takes are condensed versions of China-related stories for fast news you can use.
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