China is continuing to attract foreign financial firms into its domestic markets, including those in the wealth management industry.

This week, China's largest bank, Industrial and Commercial Bank of China, has won official clearance to set up a foreign-controlled wealth management firm with Goldman Sachs Asset Management, reports said. 

Goldman Sachs will offer a 51 per cent funding contribution ratio, while the wealth management unit of ICBC will offer 49 per cent, the Chinese bank said in an exchange filing, Reuters reported (May 26).

The joint venture is "to create a world-class asset management business," said Goldman Sachs in an emailed statement to the newswire, as it "will combine Goldman Sachs Asset Management's expertise in investment and risk management with ICBC's strong brand recognition and unparalleled access to retail and institutional clients across China."

ICBC said in the report that it "will be beneficial to the bank's provision of more diversified and professional wealth management services.” 

The venture will develop a broad range of investment products for the Chinese market over time, including quantitative investment strategies, cross-border products and innovative solutions in alternatives.

China is now opening up its wealth and asset management industry to foreign firms. For example, BlackRock has won a license to run a majority-owned wealth management venture with a unit of China Construction Bank Corp and Singapore state investor Temasek Holdings. Other firms inking such deals include Schroders and Amundi.