Abrdn in Advanced Talks with Citic Bank for China Joint Venture
British asset manager Abrdn PLC (LON: ABDN) is in advanced discussions with China Citic Bank Corp Ltd (HK: 0998) to establish a joint venture in China, according to a Reuters report on Friday. The move aligns with Abrdn’s broader strategy to expand its presence in the world’s second-largest economy.
Under the proposed deal, Abrdn will hold a majority stake, while Citic Wealth, the wealth management arm of Citic Bank, will own the remaining share, sources familiar with the matter revealed. Discussions have been ongoing for over two years as both firms explore opportunities for collaboration.
The decision stands in contrast to the recent trend among Western financial institutions, many of which have scaled back operations in China. Concerns over trade tensions with the U.S.—particularly during Donald Trump’s presidency—and broader economic uncertainties have led some firms to reduce investments or exit the Chinese market altogether.
However, UK-China relations have improved in recent years, particularly as Britain seeks to attract business and foreign investments after its exit from the European Union. The revival of high-level economic and financial discussions between the two nations last month—after nearly six years of stagnation—has also provided fresh momentum for British firms looking to strengthen ties with China.
China’s wealth management sector presents an attractive opportunity for global asset managers, given its rapid growth and increasing affluence among Chinese investors. Citic Wealth, a major player in the industry, managed approximately 2 trillion yuan ($275 billion) in assets as of the end of last year. By partnering with Citic Bank, Abrdn could gain a strategic foothold in this highly competitive market.
If finalized, the joint venture would mark a significant expansion for Abrdn in Asia, reinforcing its confidence in China’s long-term financial prospects despite ongoing global economic uncertainties.
Neither Abrdn nor Citic Bank provided official comments on the discussions. However, sources indicate that renewed diplomatic engagement between the UK and China has helped accelerate negotiations.
At the current exchange rate, $1 is equivalent to 7.2724 Chinese yuan.
