BNP Paribas in talks with China’s AgBank to form wealth JV: report

A source said that BNP Paribas will hold a majority stake in the planned venture.

French BNP Paribas’ asset management arm is reportedly in talks to form a wealth management venture with a unity of the Agricultural Bank of China (AgBank), Reuters reported based on information from anonymous sources.

Two sources with direct knowledge of the talks told Reuters that the investment management arm of BNP Paribas will hold a majority stake in the planned venture with AgBank's wealth management subsidiary.

"Getting the wealth management license is worth the effort," a source with direct knowledge of the talks told Reuters.

BNP Paribas already owns a Chinese mutual fund venture, and the new alliance would give it access to AgBank's massive retail customer base.

China further deregulated its financial markets in 2019, which allowed foreign asset managers to form majority-owned wealth management ventures with local banks.

Here’s more from Reuters.