GOOD MORNING FROM LONDON #231 26 MAY 2021
The FT confirms that Goldman Sachs has won initial approval for a wealth management joint venture with ICBC, one of China’s largest banks, as Wall Street expands its presence in China.
Trump/Biden policy is to isolate China by de-coupling from China + thereby thwart China’s progress to #1 economic power. But businessmen have a different agenda – they think commercial strategy, long term market opportunity + investment. De-coupling does not work.
“China’s wealth management industry has grown on the back of increased household wealth + continued financial market reform” said Tom Lam of Goldman Sachs. A view endorsed by Boston Consulting Group.
Govt reforms in China have allowed foreign companies to own 100% of their mutual fund businesses for the first time. China is on the front foot.