Industrial and Commercial Bank of China (601398.SS), (1398.HK) (ICBC) said its wealth management joint venture with Goldman Sachs Group Inc (GS.N) had received the country’s banking regulator’s approval to begin operations.
The China Banking and Insurance Regulatory Commission’s (CBIRC) nod comes as the world’s second-largest economy opens up its giant financial sector to investments from foreign players. This allows them to collaborate with domestic banks.
ICBC set Goldman Sachs ICBC Wealth Management up in May last year. This is with a 51% funding contribution from U.S. banking giant Goldman and 49%. They will now offer a broad range of investment products to the Chinese market over time, including quantitative investment strategies.
ICBC will “push forward” the joint venture to execute all the relevant procedures “in strict compliance with laws. And also regulations and regulatory requirements”. China’s biggest bank said in a statement.