EXCLUSIVE Barclays seeks entry into China’s $4.3 tln asset management market -sources
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HONG KONG, July 14 (Reuters) – Barclays (BARC.L) is seeking a Chinese banking partner to established up an asset administration joint enterprise in the place, two men and women with knowledge of the matter claimed, as element of British lender’s options to grow its footprint in the world’s second-biggest economic climate.
Barclays’ the vast majority-owned China asset administration undertaking will be set up by way of its unit Barclays Investment Administrators (BIM), which at this time has functions in Europe and Japan, the persons explained.
If profitable, Barclays will be part of a string of other Western money companies who have started out or are in the procedure of launching operations in China’s beneficial $4.3 trillion financial institution-dominated asset administration market.
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The China enlargement strategy also comes as Barclays is little by little growing its presence in Asia, reversing a pullback from the region 6 many years in the past when it exited its dollars equities company and offered its Singapore and Hong Kong wealth administration models.
The London-headquartered bank recently hired Cherry Zhu in Shanghai to build out BIM’s small business in China, a 3rd supply explained.
Zhu, formerly a Singapore-dependent sales director at Northern Believe in Asset Administration, in accordance to her LinkedIn profile, did not react quickly to a ask for for comment.
The resources could not be named as they were being not authorised to speak to media.
Barclays declined to comment exclusively on Reuters’ question about its approach for a China asset management joint undertaking, but said it has been increasing its existence in the place.
“The bank has been strengthening our cross-border company and expense bank system in China, escalating in a phased and calculated method,” a lender spokesperson explained in a statement.
China in 2019 authorized foreign providers to set up bulk-owned asset management JVs with local banks’ prosperity models, giving Western firms additional access to its huge economic sector.
Goldman Sachs and BlackRock (BLK.N) began running China asset management JVs recognized with Industrial and Business Lender of China (601398.SS) and China Building Bank (601939.SS) past month and in Might 2021, respectively.
Europe’s major asset supervisor Amundi has garnered much more than $11 billion of belongings from Chinese investors since it became the very first overseas-controlled JV to launch functions there in September 2020. read through additional
Barclays ran $9.9 billion in retail money property as of conclusion-June throughout far more than 110 funds managed by its prosperity and financial commitment administration models, in accordance to Morningstar data.
BIM’s solutions, nevertheless, are primarily aimed at institutional investors, in accordance to the company web page.
The China options arrive as Barclays, Britain’s third-largest bank by industry value, undertakes a broader rebuild of its presence in Asia.
In May, Barclays nearly doubled its stake in Barrenjoey Money Companions to assistance expand the Australia-based mostly boutique investment bank’s small business. go through a lot more
The lender in January this yr injected $105 million of operational capital to its Shanghai banking department, company registration records clearly show, up from a preceding $75 million maximize.
The financial institution is also beefing up its corporate and expense financial institution abilities in China as it bets on a expanding need for Chinese shoppers to tap world capital markets and attain access to cross-border advisory providers, the next supply reported.
Barclays declined to comment on Shanghai cash injection, as nicely as its marketplaces and cross-border advisory providers expansion designs.
In its most up-to-date annual report, Barclays explained that China was 1 of the worldwide marketplaces in which it aims to grow its corporate and investment banking organization existence, together with the Center East.
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Reporting by Selena Li Modifying by Sumeet Chatterjee and Jamie Freed
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