Schroder BOCOM Wealth Management receives regulatory approval to commence operating

Schroder BOCOM Wealth Management Co., Ltd. (“Schroder BOCOM Wealth Management”) in Shanghai has now received regulatory approval from the China Banking and Insurance Regulatory Commission. The business, which received approval for business commencement, has become the third international joint venture wealth management company to have received approval in China.

Schroders has long been committed to the Chinese market. It opened its first office in 1994, in Shanghai and have ever since been focused on developing its footprint in this dynamic market. In 2005, the business formed the hugely successful, joint venture fund management company with BOCOM, the Bank of Communications Schroders Fund Management Company.

This wealth management joint venture represents a significant opportunity for Schroders, as the world’s second and third largest equity and bond markets, respectively. As a result of Schroders’ focus on China, we have been able to support both overseas investors looking to diversify into China and Chinese institutions keen to invest in the rest of the world.

Lieven Debruyne, Schroders Global Head of Distribution, commented:

“The announcement of this licence is an important development in the long and successful relationship we have built with BOCOM. Since 2005, we have supported our partner on asset management needs. This is a new chapter. It offers the opportunity to grow a wealth management proposition together, to further extend our first-class investment capabilities and innovative product range to a greater number of savers in China.”

Today, Schroder Investment Management Limited holds a 51% stake in Schroder BOCOM Wealth Management, while Bank of Communications Wealth Management Co., Ltd. holds 49% of shares.

Schroder BOCOM Wealth Management will leverage the complementary expertise and strengths of both shareholders across multiple disciplines, from client resources, product design, and investment capabilities to risk management.

This new company will also draw on Schroders’ years of experience in using big data to support investment research and decision making. In parallel, the company will also align the positioning of investment strategies to address the risk and return appetite of local investors, with an aim to provide clients with world-class wealth management services.

In February 2021, Schroders announced it has received regulatory permission to form the business.