Schroder Investment Management and BoCom Wealth Management have received regulatory permission to establish Schroder Bank of Communications Wealth Management in Shanghai.

The proposed entity, the third wealth management joint venture partnership having received such regulatory permission, will be majority owned by Schroder Investment Management with a 51% stake in the company, while BoCom Wealth Management will hold the remaining 49%.

“The Chinese market represents a significant opportunity for Schroders, entailing the world’s second- and third-largest equity and bond markets respectively,” says Peter Harrison, Group CEO at Schroders. “As a result of our focus on China, we have been able to support both overseas investors looking to diversify into China and Chinese institutions keen to invest in the rest of the world.

According to Schroders, its global investment capability, distribution network and client servicing resources complement those of BoCom Wealth Management, creating a strong synergy between the two businesses.