Abrdn Nears Asset Management Joint Venture with Citic Bank in China

Abrdn is in advanced talks with Citic Bank to establish an asset management joint venture in China, according to sources familiar with the matter. The British asset manager aims to expand in the world’s second-largest economy, bucking the trend of Western firms retreating due to economic uncertainties and U.S.-China tensions.

The UK’s second-largest independent asset manager is expected to hold a majority stake in the venture, while Citic Wealth, Citic Bank’s wealth management arm, will own the remaining share. Citic Wealth, China’s third-largest bank-owned wealth unit, manages 2 trillion yuan ($275 billion) in assets as of last year.

These discussions gained momentum following the recent revival of high-level economic and financial talks between China and the UK after nearly six years of stagnation. Abrdn and Citic Bank have been exploring collaboration for years, including options such as forming a mainland China venture or Abrdn acquiring a stake in Citic Wealth.

The move comes as the UK-China relationship shows signs of improvement, diverging from other Western financial firms that have cut jobs or scaled back expansion plans in China. The partnership would mark a significant step for Abrdn in strengthening its foothold in the Chinese market.

Neither Abrdn nor Citic Bank has commented on the discussions. Citic Bank, a key financial institution under China’s state-owned Citic Group, has yet to respond to inquiries.

By entering China’s growing wealth management sector, Abrdn seeks to capitalize on opportunities in the $275 billion market, reinforcing its global strategy despite ongoing economic uncertainties.