Goldman Sachs & Co. LLC and global investment manager BlackRock Inc. are in talks to separately establish wealth management joint ventures in China after the country announced eased rules on foreign ownership in 2019, Caixin reported Jan. 17, citing separate sources close to the matter.
Goldman Sachs is in preliminary discussions with the wealth management division of Industrial & Commercial Bank of China Ltd. to launch a new asset management partnership, in which the U.S. bank will own a 51% stake, an undisclosed source told the news outlet.
Separately, BlackRock and Singapore's Temasek Holdings (Pte.) Ltd. have signed a nonbinding agreement with China Construction Bank Corp.'s wealth management unit for a new joint venture, sources said.
BlackRock and Temasek will collectively own a 60% stake in the joint venture, a person close to the matter said, adding that a timetable has yet to be set for the partnership and any deal will be subject to regulatory approval.
In October 2019, China announced plans to remove foreign investment caps for asset management companies in April as part measures to ease restrictions on foreign investment in domestic financial institutions, the publication reported.