AsianFin -- Abrdn is in advanced negotiations with Citic Bank to establish an asset management joint venture in China, Reuters reported, citing sources familiar with the matter.
The British firm aims to strengthen its foothold in the world's second-largest economy, despite ongoing global tensions and economic uncertainties.
The proposed venture comes amid a thawing of British-Sino relations and stands in contrast to the actions of several Western financial institutions that have recently scaled back operations in China, citing concerns over the country's economic health and the growing tensions between Beijing and Washington.
As part of the venture, Abrdn is expected to hold a majority stake, with the remainder controlled by Citic Bank's wealth management arm, Citic Wealth. Citic Wealth, which manages assets worth 2 trillion yuan ($275 billion) as of the end of 2024, is China's third-largest wealth management unit owned by a bank. The talks remain confidential, and the details could change as negotiations continue.
Explore more exclusive insights at nextfin.ai.