UK-based life insurer Prudential has launched an asset management joint venture (JV) in Beijing in partnership with Chinese conglomerate CITIC Group.
The unit trading as Prudential-CITIC Asset Management Co secured a licence from China’s Banking and Insurance Regulatory Commission (CBIRC) earlier in 2020.
The unit reportedly has a registered capital of CNY500m ($70.4m), according to Reuters.
It has finalised its business registration with the Beijing Local Financial Supervision and Administration Bureau last month.
The move reinforces that China is pushing ahead with its financial sector liberalisation plan despite the market turmoil caused by Covid-19.
Recently, Goldman Sachs as well as Morgan Stanley received the green light from the China Securities Regulatory Commission (CSRC) to take majority stake in their China securities JVs.
At the same time, BlackRock and Neuberger Berman submitted applications to the CSRC to establish mutual fund businesses in China.
The move comes after the elimination of foreign ownership restrictions in the fund management and securities businesses as part of the phase-one trade deal with the US.
Notably, last month, the CBIRC approved the formation of a new national asset management company (AMC) to manage non-performing loans.
The clearance for the AMC marks the first of its type granted since 1999.