China Renaissance Holdings Ltd. plans to partner with more foreign financial institutions, in a bid to tap into the rising demand for managing overseas assets among its Chinese clients, according to COO Xiang Wei.
The Hong Kong-listed Chinese boutique investment bank started branching out into wealth management in mid-March, when it signed a strategic cooperation agreement with Liechtenstein's LGT Bank AG. The deal will give China Renaissance's clients direct access to LGT Bank's offshore wealth management solutions, Xiang said at the bank's earnings briefing on March 20.
Xiang added that China Renaissance's target clients for its wealth management business would include founders or senior management of China's new-economy companies. "We will focus on serving wealth owners from China's new economy with global asset allocation services," he said.
China Renaissance, founded in 2005 by a former banker at Morgan Stanley, is known for its focus on new-economy deals. The bank listed its shares on the Hong Kong stock exchange in September 2018 after raising HK$2.7 billion in an IPO. LGT Group Foundation, the parent of LGT Bank, was one of the offering's cornerstone investors and acquired an unspecified stake in China Renaissance for US$25 million.
China Renaissance reported a 15.8% increase in adjusted net profit from a year ago to US$67.3 million, with revenue rising 51.2% to US$210.9 million.