Unique-Abrdn to launch China asset administration enterprise with Citic unit, sources say

By Selena Li

HONG KONG (Reuters) – Abrdn is in superior talks with Citic Financial institution to launch an asset administration three way partnership in China, two folks with data of the matter stated, because the British agency appears to be like to bolster its presence on this planet’s second-largest economic system.

The discussions comply with a warming in British-Sino relations and distinction with selections by a number of Western monetary establishments in recent times to both lower China jobs or shelve their growth plans on considerations concerning the well being of the Chinese language economic system and tensions between Beijing and Washington.

Abrdn, the UK’s second-largest unbiased asset supervisor, expects to carry a majority stake within the enterprise with the remaining owned by Citic Financial institution’s unit Citic Wealth, stated the individuals who declined to be recognized because the talks are confidential.

Citic Wealth is China’s third-largest bank-owned wealth administration unit with 2 trillion yuan ($275 billion) in property as of the tip of final of yr.

Abrdn declined to remark. Citic Financial institution, the principle banking arm of China’s central government-owned conglomerate Citic Group, didn’t reply to a Reuters request for remark.

Abrdn and Citic Financial institution have been in talks for the final couple of years about both establishing a enterprise in mainland China or abrdn taking a stake in Citic Wealth, stated the sources.

The discussions gained contemporary impetus after the revival of high-level financial and monetary talks between China and the UK final month after having been frozen for almost six years, they added.

($1 = 7.2724 Chinese language yuan )

(Reporting by Selena Li; Modifying by Sumeet Chatterjee and Edwina Gibbs)