Abrdn in Advanced Talks with Citic Bank for China Asset Management Venture
HONG KONG (Reuters) – British asset manager Abrdn is in advanced discussions with Citic Bank to establish a joint venture in China, according to two sources familiar with the matter. The move marks a strategic effort by Abrdn to strengthen its presence in the world’s second-largest economy.
The talks come at a time of improving British-Sino relations and contrast with recent decisions by several Western financial institutions to scale back operations in China. Many global firms have either reduced their workforce or halted expansion plans due to concerns about China’s economic slowdown and ongoing tensions between Beijing and Washington.
Abrdn, the UK’s second-largest independent asset manager, is expected to hold a majority stake in the proposed venture, while Citic Bank’s wealth management unit, Citic Wealth, would own the remaining share, the sources said. Given the sensitivity of the negotiations, the individuals requested anonymity.
Citic Wealth, one of China’s largest wealth management units owned by a bank, managed assets worth approximately 2 trillion yuan ($275 billion) at the end of last year.
Abrdn declined to comment on the matter, while Citic Bank—part of the state-owned Citic Group—did not respond to Reuters’ request for a statement.
According to the sources, Abrdn and Citic Bank have been engaged in discussions for the past few years, exploring different partnership options, including setting up a joint venture in mainland China or Abrdn acquiring a stake in Citic Wealth.
The talks recently gained momentum following the resumption of high-level economic and financial discussions between China and the UK. These discussions, which had been on hold for nearly six years, were revived last month, signaling a shift in diplomatic and economic engagement between the two nations.
China’s wealth management industry has been growing rapidly, attracting interest from global asset managers seeking access to the country’s expanding pool of affluent investors. If finalized, the partnership between Abrdn and Citic Bank could provide the British firm with a significant foothold in this lucrative market.
The deal, if successful, would also demonstrate renewed confidence among Western firms in the long-term potential of China’s financial sector despite lingering economic uncertainties.
At the current exchange rate, $1 is equivalent to 7.2724 Chinese yuan.
