The asset management division of JP Morgan Chase & Co. pays $ 410 million for 10 percent stake in crown corporation China Merchant Bank, The Wall Street Journal reported Friday (March 19).

China Merchant Bank is the country’s leading wealth management company. The 10 percent stake still needs the green light from Chinese regulators. This decision is important, as it is the only time that a bank in China has been open to letting a foreign investor have control of a wealth management subsidiary.

JP Morgan Asset Management and China Merchants Bank partnered two years ago to advance new product development as well as financial literacy.

“We hope that this strong alliance will help open up China’s financial industry,” he added. Liu hui, executive assistant chairman of China Merchants Bank and chairman of the group’s wealth management subsidiary, told the WSJ.

The Shenzhen-based bank is one of China’s largest commercial lenders. Its wealth management subsidiary controlled around $ 377 billion at the end of last year, up 12% from 2019, according to the WSJ, citing the bank’s annual report.

Based in Shenzhen’s Futian District, China Merchant Bank was founded in 1987. It is the country’s leader in wealth-related affairs, Citigroup analysts said in January. The bank said at the time that it made more revenue from its wealth management division and also managed more assets for individual investors than any of the other banks it currently covers.

China’s asset management industry grew ten-fold between 2009 and 2019, reaching $ 16 trillion, the WSJ reported, citing the World Economic Forum and Oliver Wyman.

The Chinese robo-advisor service Bang NiTou reached one million users on Wednesday (March 17). Backed by Vanguard and Ant Group, BangNiTou has engaged investors with its minimum buy-in of around $ 122. After assessing a user’s investment objectives and risk aversion, BangNiTou makes recommendations from a selection of 6,000 mutual funds.