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Goldman Sachs sets up wealth JV with China partner


Joint venture will develop a range of products for domestic investors
Goldman Sachs Asset Management (GSAM) has gained preliminary approval to form a wealth management joint venture with Industrial and Commercial Bank of China (ICBC).
The US firm will have a majority stake (51%) in the JV, with ICBC Wealth Management, a subsidiary of China’s biggest bank, ICBC, owning 49%, according to a statement by GSAM on 25 May.
The joint venture will develop a broad range of asset management products to domestic investors in China over time, including quantitative investment strategies, cross-border products and innovative solutions in alternatives, the US firm said. ....

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Goldman, Citigroup lead U.S. banks plowing billions into China


(March 17): Goldman Sachs Group Inc. led U.S. banks plowing billions of fresh cash into China last year, undeterred by political turmoil as the world’s second-largest economy further opens its US$50 trillion financial market.
The bank’s “cross currency outstandings” rose 33% to US$17.5 billion last year in China, covering a broad array of cash and financing to companies and government entities, according to an annual filing. Together with Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp and Morgan Stanley, the five big U.S. banks had US$77.8 billion in exposure, up 10% from 2019.
China’s financial markets are a potent lure for the world’s biggest banks, with billions of profits on the line in investment banking and wealth management. But they also face an opaque regulatory environment and a tense political climate that has deteriorated over the past years and that’s unlikely to see major improvements under the Joe Biden administration. ....

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