(Yicai) June 24 -- Allianz Global Investors is subscribing to a new share issuance by Guomin Pension which will give the German asset management giant a 2 percent stake in one of the country’s biggest players in its rapidly growing private pension market.

AllianzGI, which is part of Europe’s largest insurer Allianz, is buying 228 million new shares for CNY284 million (USD39.1 million), Guomin Pension, which was set up in March 2022 with a registered capital of CNY11.2 billion (USD1.5 billion), said today.

The move will give Allianz GI, which was awarded a wholly foreign-owned public fund management license by Chinese regulators two months ago, a toe-hold in China’s fast developing private pension market amid an ageing population.

The tie-up with AllianzGI will provide Guomin Pension, which is piloting personal and commercial pensions in the country, with a more international perspective, the Beijing-based firm said. Guomin Pension will learn from the German company's rich experience in terms of product design, assets allocation, pension insurance services, and other aspects.

"Building our business in China is a long-term strategic priority for AllianzGI,” Chief Executive Officer Tobias Pross said. “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.”

"China's trillion-dollar mutual fund market is poised for strong growth due to ageing demographics, rising household incomes and ongoing pension reforms. AllianzGI is well positioned to serve this growing market," Pross said.

Founded in 1998, AllianzGI managed assets worth more than EUR533 billion (USD572.5 billion) in over 20 markets worldwide as of the end of last year, according to its website. The Frankfurt-based firm is one of the first overseas investment managers of national social security funds and one of the biggest foreign asset managers by funds invested in the Chinese mainland capital market.

Editor: Kim Taylor