BEIJING/HONG KONG (Reuters) - Allianz Global Investors (AGI), one of the investment arms of German insurer Allianz, has become the first foreign company to own a stake in China's pension insurance giant Guomin Pension.
AGI was allowed to subscribe to newly issued shares representing 2% in the company, and the stake is worth 228 million yuan ($31.40 million), the pension firm said in a statement issued Monday.
Guomin Pension, jointly launched by China's largest banks and insurers, was established in 2022 to promote the development of the country's private pension market.
The pension giant's registered capital will rise to 11.4 billion yuan with AGI's investment, making it one of the most capital-heavy asset managers in China.
Global financial firms have in recent years sought to take part in China's nascent private pension sector, which is seen as potentially lucrative as public pensions shrink and the population ages.
Allianz's purchase comes two months after it won final approval to launch a 100%-owned fund unit in China catering to onshore retail and institutional investors, and potentially pensioners.
($1 = 7.2617 Chinese yuan renminbi)
(Reporting by Beijing and Hong Kong newsroom, Editing by Louise Heavens and Miral Fahmy)
