Amundi SA and Bank of China Ltd.'s BOC Wealth Management Co. Ltd. subsidiary have received China's regulatory approval to establish an asset management joint venture in the world's second-largest economy.
Following approval from the China Banking and Insurance Regulatory Commission, the venture will become the first foreign-controlled asset manager in China, with the Paris-based firm holding an unspecified majority stake, according to a Dec. 20 release.
The two companies expect the venture to commence operations by the second half of 2020.
In August 2018, Chinese authorities scrapped restrictions on foreign shareholdings in domestic banks and asset management firms, as part of the country's efforts to open its financial sector to foreign investors. So far, only a handful of foreign financial firms set up onshore units in China in which they own a controlling stake.