Principal eyes huge pension potential
Its partner, CCB, has been an active participant in the development of the Belt and Road Initiative, and there are opportunities for Principal to facilitate some of CCB’s activities, not only helping the Chinese bank source for projects, but also navigate local regulations in the different markets involved in the initiative the company operates in.
The US company has a joint venture of asset management partnerships in Southeast Asia with CIMB Group Holdings Berhad — a Malaysian banking group headquartered in Kuala Lumpur, which may also benefit from cross-border mutual recognition schemes for asset management under the initiative.
“As China pledged to further open up in its financial service sector, we see opportunities for Principal to offer our overseas investment capabilities to Chinese investors, while offering our Chinese joint venture’s expertise in China equity and fixed income to our clients outside of China,” said Thomas Cheong, Principal’s vice-president and head for North Asia.
Both CCB and Principal signed a strategic cooperation agreement to expand the relationship to other areas of asset management, pension development and the joint development of overseas market opportunities in 2016.
“The economic transition pushed by the Chinese government will gradually transfer the country from an exportdriven manufacturing economy to an economy based on internal consumption, saving and investment,” said Zhao Ying, a researcher at the institute of industrial economics of the Chinese Academy of Social Sciences in Beijing.