Allianz to invest $31.40m in China’s mega pension firm

Allianz Global Investors (AGI), the investment arm of German insurance giant Allianz, has made history by acquiring a two per cent stake worth 228 million yuan ($31.40 million) in China’s state-backed pension insurance leader, Guomin Pension.

With AGI’s investment, Guomin Pension’s registered capital will increase to 11.4 billion yuan ($1.57 billion), solidifying its position as one of China’s most well-capitalised asset managers.

Global financial institutions have been increasingly drawn to China’s burgeoning private pension sector, which is projected to become highly lucrative as public pension systems face pressure and the population ages.

This investment by Allianz follows its successful acquisition of regulatory approval just two months ago to establish a wholly-owned fund management unit in China. This new entity will cater to both retail and institutional investors, potentially including future retirees.

Attribution: Reuters