The China Banking and Insurance Regulatory Commission (CBIRC) has given approval to the joint venture launch and its operations, 13 months after it received its preliminary approval.
Goldman Sachs ICBC Wealth Management will have a registered capital of RMB1bn ($149.4m), of which 51% is contributed by Goldman Sachs Asset Management (GSAM), and 49% by ICBC Wealth Management.
“In the next step, the bank will push forward ICBC Wealth Management to implement the relevant procedures in strict compliance with laws, regulations and regulatory requirements, and carry forward the prompt commencement of business and operation of Goldman Sachs ICBC Wealth Management,” said ICBC in an announcement to the Hong Kong stock exchange.
According to CBIRC, the joint venture has to begin its operation within six months after approval. The expected start date was not disclosed as a spokesperson from Goldman Sachs responded to FSA that the firm had “just received approval and more details will be available in due course”.
The joint venture is approved to offer financial products to the public, private wealth management products to qualified investors, financial advisory services and other business approved by the authorities.
Goldman Sachs expanded into the mainland Chinese market in 1994 when it opened representative offices in Beijing and Shanghai, and subsequently set up a securities joint venture in China.
The firm has increased its ownership in Goldman Sachs Gao Hua to 51% after receiving regulatory approval in 2020, and has started the process to acquire the remaining stake to own 100% of its China businesses.
GSAM had more than $2trn in assets under supervision as of 31 December 2021, according to the firm.