(Yicai) July 16 — Several foreign-backed wealth management joint ventures in China, including BlackRock CCB Wealth Management and BNP Paribas ABC Wealth Management, have defied this year’s market downturn by sharply increasing their assets under management.
BlackRock CCB Wealth, the joint venture between US asset manager BlackRock and an affiliate of China Construction Bank, recently saw its AUM nearly double to CNY51.3 billion (USD7.2 billion) from last December, Yicai learned from sources familiar with the matter.
BNP Paribas ABC Wealth, a joint venture between France’s BNP Paribas Group and an affiliate of Agricultural Bank of China, also reported AUM exceeding CNY60 billion this month.
In contrast, many Chinese-funded wealth management firms saw asset levels fluctuate or decline in June, amid a recovering stock market, muted bond returns, and volatile market conditions.
Despite the recent growth of foreign players, domestic firms remain far larger in scale. Three Chinese wealth managers, including industry leader China Merchants Bank Wealth Management, each manage over CNY2 trillion (USD278.6 billion), while nearly 10 firms have surpassed CNY1 trillion in assets.
Alexandre Werno, chief executive of BNP Paribas ABC Wealth, attributed the firm’s rapid expansion to strong support from local banking channels. In the current low-interest environment, the firm has relied on a diversified investment strategy across bonds, fixed-income products, and other assets.
Werno noted that the company’s offerings are primarily fixed-income based, including both open-ended and locked-period products. It also enhances returns through alternative assets such as gold, foreign currency holdings, and overseas equities accessed via interest rate swaps.
In line with BNP Paribas ABC Wealth’s conservative approach, other foreign-funded wealth managers have also limited their exposure to equities this year. According to Yicai sources, equity holdings remain a minor portion of most firms’ portfolios, typically in the single digits and well below the 20 percent regulatory cap.
BlackRock CCB Wealth has similarly increased its focus on fixed-income investments. After hiring Fan Hua, former chief equity investment officer at China Merchants Bank Wealth, the firm ramped up bond purchases in 2023 and surpassed CNY10 billion (USD1.39 billion) in AUM in the first half of that year. Subsequently, the company began offering USD-denominated wealth products, accelerating its asset growth further.
Industry insiders told Yicai that foreign-funded wealth managers heavily depend on Chinese banks’ distribution channels. However, not all partner banks prioritize these joint-venture products, listing them alongside those from various institutions and public funds. As a result, foreign JVs with stronger bank support tend to scale more quickly.
Editor: Emmi Laine
