Abrdn in Advanced Talks with Citic Bank to Launch Asset Management Joint Venture in China

Abrdn, the UK’s second-largest independent asset manager, is in advanced talks with Citic Bank to launch an asset management joint venture in China, aiming to strengthen its presence in the world’s second-largest economy. The venture, expected to see Abrdn holding a majority stake, would be backed by Citic Wealth, a unit of Citic Bank and China’s third-largest bank-owned wealth management entity with assets totaling 2 trillion yuan ($275 billion) as of last year. This move comes amid a warming in British-Sino relations and contrasts with recent decisions by several Western financial institutions to either reduce their China workforce or halt expansion plans due to concerns about the Chinese economy’s health and tensions between Beijing and Washington. The discussions between Abrdn and Citic Bank have been ongoing for a couple of years, exploring options for a mainland China venture or Abrdn acquiring a stake in Citic Wealth. The talks have gained momentum following the resumption of high-level economic and financial dialogues between China and the UK last month, after a nearly six-year hiatus. Both Abrdn and Citic Bank have declined to comment on the matter, underscoring the confidential nature of the discussions.