South Korea’s KB Asset Management and Beijing-based China Asset Management Co (ChinaAMC) have signed a pact centred on exchange-traded funds, including joint development of ETFs and listing the funds in Korea and Hong Kong.
The deal also calls for the asset managers to cooperate to expand their overseas ETF business and share market intelligence and investment research.
ChinaAMC is China’s largest ETF provider, and KB Asset Management is one of the top three ETF providers in Korea. The companies announced the signing of the memorandum of understanding in a joint statement on June 26.
Kim Young-sung, chief executive of KB Asset Management, says the partnership will combine the firm’s product development capabilities with ChinaAMC’s international network to broaden access to Korean investment opportunities.
The collaboration “will bring together the firms’ strengths in the Korean and Chinese markets to create new investment opportunities for global investors”,according toLi Yimei, chief executive of ChinaAMC.
KB Asset Management, a unit of KB Financial Group, manages around 191 trillion won (US$123 billion) of assets. Its RISE ETF franchise has more than 39 trillion won of assets under management.
ChinaAMC manages approximately 3 trillion yuan ($418 billion) of assets.
