Leading UK insurer Prudential is close to reaching an agreement to set up a fund management joint venture with China's Citic Group.
Confirmation of a joint venture could come as early as next week, according to the Financial Times, though rumors of a possible deal between the British insurer and Citic, one of China’s leading state-owned financial conglomerates, have been circulating for some time.
The China Securities Regulatory Commission has approved the venture, which will allow Prudential to sell retail investment products throughout China and provide the British insurer with its ninth Asian fund management business.
A successful deal would also add to Prudential’s existing life assurance agreement with Citic, which already holds licenses to sell products in 10 Chinese cities – the most for any foreign life insurer in the country.
China is rapidly opening its financial sector to overseas competition. As one of the world’s fastest-growing financial markets, banks in the country are currently seeking strategic investments from foreign parties to help shore up before the banking sector opens to foreign competition next year.