Bankhaus Julius Baer has made a strategic move to enter the Chinese market. Their approach is original.
Investors around the world are currently questioning their exposures to China. But traditional banking house Julius Baer has just entered into a partnership there. The Swiss banker has become a strategic partner of Grow Investment Group in China, the credit institution announced on Wednesday.
The partnership has not only been formally agreed upon, but is also underpinned with a low double-digit million dollar amount as Julius Baer’s investment in the Chinese financial market, the statement added.
Win-win for clients
Grow’s clientele will also be able to benefit from Julius Baer Bank’s expertise, the parties involved explained, explaining the wider purpose of the deal.
Grow Investment Group is still a fairly young company. It was only founded in June 2021 and is an asset manager focused on the Chinese market. However, the firm was launched by an experienced team of senior managers who have already won numerous awards, according to the communiqué.
Focus on innovation
They already have a good track record for innovative and market-leading investments as well as distribution platforms, Julius Baer also cheered. These are the next-generation asset management firms, he said, and Grow is focused on China, an interesting market.
The form of cooperation chosen was the “domestic limited partnership,” he said. Clients of Grow could access Julius Baer products through “Qualified Foreign Institution Products,” it said of the technical implementation.
Many millions to startup
For the Swiss it is the first step into the direct Chinese market. The approach, via an extremely young company but with experienced management, is quite unusual for the Chinese market. In addition, a double-digit million amount is invested in the startup, which is not without risks for Julius Baer.
Grow, on the other hand, is looking forward to the collaboration because they would get the knowledge of the Swiss. Julius Baer is happy because the transaction will give it access to clients in the important market of China.
And this is also unusual because many other international investors, as said, are currently questioning their activities in China.