Abrdn Explores Joint Venture with Citic Bank for China Expansion
Abrdn, the second-largest asset manager in the UK, is reportedly in advanced negotiations with Citic Bank to establish an asset management joint venture in China. This move signals Abrdn's strategic focus on expanding its footprint in the world's second-largest economy.
The talks come amidst improving relations between the UK and China and stand in contrast to the recent trend of Western financial institutions scaling back operations or postponing expansion plans in China due to concerns over the country's economic health and tensions with the US.
Sources close to the matter indicate that Abrdn aims to hold a majority stake in the joint venture, while Citic Wealth, a subsidiary of Citic Bank, will own the remaining shares. Citic Wealth ranks as China's third-largest bank-owned wealth management unit, managing assets worth 2 trillion yuan ($275 billion) as of the end of last year.
Abrdn and Citic Bank have been exploring potential ventures for several years, including establishing a joint venture or Abrdn acquiring a stake in Citic Wealth. However, the discussions have recently gained traction following the resumption of high-level economic and financial talks between China and the UK last month after a six-year hiatus.