On October 19, Agricultural Bank of China announced that its wholly-owned subsidiary Agricultural Bank Financial Management received the approval of the China Banking and Insurance Regulatory Commission, and Agricultural Bank Financial Management was approved to cooperate with France Paris Asset Management Holding Company (hereinafter referred to as "French capital management") to build a Sino-foreign joint venture financial management company.

The investment proportion of the Sino-foreign joint venture financial management company to be prepared is 49% of Agricultural Bank Financial Management and 51% of French capital management. It is the fifth Sino-foreign joint venture after Huihua Wealth Management, BlackRock CCB, Schroders Bocom and Goldman Sachs ICBC.

In terms of equity relationship and registered capital, Sino-foreign joint venture wealth management companies are different from bank wealth management subsidiaries.

Public information shows that Huihua Wealth Management, BlackRock CCB Wealth Management, Schroder Bank of Communications, Goldman Sachs ICBC Wealth Management company registered capital of 1 billion yuan, and the proportion of foreign investment management companies are more than 50%. The financial subsidiary is 100% controlled by the parent bank, of which the registered capital of the state-owned bank's financial subsidiary is more than 8 billion yuan.

Compared with financial subsidiaries, Sino-foreign joint venture financial companies pay more attention to differentiated development, make full use of their own advantages and resource endowments, create distinctive brand positioning and innovative products, and form a differentiated layout with the existing businesses of both shareholders to achieve complementary advantages and misplaced development. In terms of product design, we pay more attention to exploration and innovation, create a product line different from the existing traditional business, combine the diversified investment needs of customers, expand the scope of underlying assets, make efforts in cross-border investment, equity investment, alternative investment and other aspects, enrich the product series, and strive to create a small but fine financial "boutique".

With the establishment of the fifth Sino-foreign joint venture financial management company, more foreign institutions will enter the Chinese market in the future, such as foreign insurance companies, and the main body of financial management companies will show a diversified trend.

"With the continuous development of China's economy and the accumulation of wealth, the development of the asset management market is promising, and it is expected that more mature foreign institutions will participate in the wealth management market in China." China's asset management institutions need to learn the global management experience of overseas institutions, and at the same time, based on their own endowment advantages, expand their own ability circle, and gradually move towards the global exhibition industry.

Foreign-funded institutions have a profound accumulation of business capabilities and international experience. In the future, they need to actively cooperate with Chinese-funded institutions to achieve mutual benefit and win-win results. Only in this way can they further participate in China's economic development.