Allianz Global Investors has received regulatory approval for the investment of a 2% stake in Guomin Pension & Insurance Company Limited, becoming the first foreign asset manager to own a stake in Guomin Pension.
Established in 2022, Guomin Pension was jointly launched by China’s large financial institutions to promote the development of the country’s private pension market.
“Guomin Pension serves as an important part of China’s active response to its ageing population and its presence will help the overall development of the third-pillar pension market in China,” a statement said.
AllianzGI has received approval to subscribe to around 228m newly issued shares in Guomin Pension worth approximately RMB284m ($39m). This will result in an increase in Guomin Pension’s registered capital to around RMB11.378bn, which has been approved by the National Financial Regulatory Administration.
Tobias Pross, chief executive officer at AllianzGI, said the move was “the latest important milestone in our long-term growth plan in a country where we see significant market opportunities”.
He added: “China’s pension market is growing fast. By drawing on our decades of international markets experience, along with our extensive expertise in areas including risk management, product development and asset allocation, we think we can help Guomin Pension deliver innovative solutions that best meet the country’s retirement needs.”
The market size of China’s third-pillar personal pensions system, launched in 2018 as pilot schemes, is projected to grow to RMB4trn under the existing regulatory landscape by 2030, and may reach RMB7trn if additional reforms are implemented.
Together, AllianzGI and Guomin Pension will aim to leverage their resources and expertise to provide products and services that are more inclusive, diverse, and accessible to the general public in China.
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