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China : AMP CAPITAL expands ASIAN presence
Publish Date : 03-Sep-2013
AMP Capital is the latest big financial services company to boost its Asian presence. It has created funds management joint venture in China with the country's largest insurer. It would take a 15 per cent founding stake in China Life AMP Asset Management. China Life Insurance Group will hold the rest. It is meant to exploit fast growth in China's wealth management sector, and a recent rule change which allows China's insurance companies to offer funds management.
The business is aimed at selling domestic equities and fixed-income products to retail and institutional customers in China. The company cited private-sector forecasts that assets under management in China's mutual fund industry would reach $800 billion this year and almost $1.5 trillion by 2017.
AMP already has a presence in Japan and China. Its chief executive Craig Dunn said the Chinese market was central to its strategy. "A funds management joint venture in China is a strategically significant move for AMP, giving us direct access to the world's second-largest and fastest-growing major economy," he said.
Several large Australian financial services firms eye the growth potential of Asia's rising middle classes, tipped to spend billions more on insurance, banking and savings products in decades to come.
Big banks with minority stakes in financial services businesses in Asia comprise the Commonwealth Bank that has stakes in banks in China and Vietnam, and ANZ said to be considering the sale of its stake in Indonesian lender Panin Bank. Insurance Australia Group has plans to attain 10 per cent of its gross written premium from Asia by 2016, after expanding its presence in Thailand, Malaysia, India, China and Vietnam.
