At the initial stage of the partnership, Creditease and Amundi plan to launch the Creditease USD Cash Plus fund − a US dollar cash management product for high net worth individuals and institutional investors around the world, according to Zhong Xiaofeng, CEO for North Asia at Amundi. The fund will be available on Creditease’s platform in China and Hong Kong. Amundi is responsible for advice in terms of global asset allocation.
The partnership will also involve sharing of technical expertise to help enhance risk management and investment capabilities at Creditease, Zhong told FSA. Zhong added that it is too early to disclose any further joint or co-branded product plans.
“The backdrop of this partnership is the rapid development of the regional asset and wealth management industry,” he said.
“It is necessary for us to learn the needs of investors and perhaps to launch different solutions accordingly in the future. Partnership in the offshore [Hong Kong] market comes to mind naturally, as it does not involve any cross-border capital flow in or out of the mainland.”
Creditease WM becomes Amundi’s first wealth manager partner in China, according to the statement. Creditease WM is a subsidiary of Creditease, a Beijing-based fintech company. It develops payment technology, investment robo-advisory tools, insurance technology as well as blockchain-based products and services.
“Through the cooperation, Creditease will improve its financial management ability and acquire more institutional clients,” Tang Ning, founder and CEO of Creditease said in a statement. In return, the Chinese wealth manager will introduce to Amundi domestic high net worth individuals interested in investing offshore.
The partnership will also involve cooperation with local regulators and relevant industry organisations as well as professional personnel training and exchanges.
While Amundi has had a presence in China through its joint venture with Agricultural Bank of China since 2007, Zhong said he believes the partnership with Creditease will not create conflicts with the JV, as they operate differently.
Amundi is also considering setting up wholly foreign-owned enterprise (WFOE) in China, Zhong said previously. In addition, it plans to launch thematic funds in Hong Kong in the next 18 months.
Overall, the firm managed €177.3bn ($218.6bn) in Asia at the end of 2017.
