(Alliance News) - Allianz SE on Thursday said its subsidiary has obtained a licence from Chinese regulators to commence its fund business in the priority market.

The Munich-based financial services company said its investment firm subsidiary Allianz Global Investors will operate as a wholly foreign-owned public fund management company in mainland China.

In August 2023, the company received initial approval to establish an FMC with registered capital of USD41.2 million.

AGI Chief Executive Officer Tobias Pross said: "Building our business in China is a long-term strategic priority for Allianz GI. Having obtained our FMC licence, we can now commence our public fund management business in this dynamic market, allowing us to begin serving the growing population of retail investors in the country."

Considering the country's ageing demographics, pension reform, and rising household incomes, Allianz believes the Chinese fund market is poised for growth.

Allianz shares were up 0.1% to EUR262.10 each in Frankfurt on Friday afternoon.

By Elijah Dale, Alliance News reporter

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