German insurer Allianz has obtained the regulatory nod to set up a wholly-owned insurance asset management company in China, becoming the latest to benefit from the country’s financial sector liberalisation plan.

The new entity – Allianz Insurance Asset Management Company (Allianz IAMC) – will be established in Beijing.

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The green light from the China Banking and Insurance Regulatory Commission (CBIRC) comes a month after the China-EU Investment Agreement was inked to bolster China-EU ties.

The approval makes Allianz IAMC the first wholly foreign-owned company of its kind in China.

Allianz called the formation of the new entity a critical strategic step in setting foot in China’s asset management space.

The insurer will establish the new entity through Allianz (China) Insurance Holdings (AZCH).

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AZCH is the first wholly foreign-owned insurance holding company in the country.

Last month, it secured the regulatory approval for a RMB1.2bn ($186m) infusion. Allianz Group remains the firm’s sole shareholder.

Commenting on the development, Allianz said: “The preparatory establishment of Allianz IAMC, via the platform of AZCH, is a critical strategic move for Allianz Group to enter into the Chinese asset management market, which also demonstrates the strong confidence and long-term commitment of Allianz Group to the China market.

“As a key component of Allianz’s strategy in China, AZCH will carry out the preparation works of the IAMC preparatory establishment in accordance with Chinese laws and regulations.”

Asia is Allianz core growth region, where it has been operating since 1910.

In the region, the insurer currently has a presence across 14 markets, with a workforce of over 36,000 and more than 21 million customers.

Its service suite in the region include property and casualty insurance, life, protection and health solutions, and asset management.

Recent China moves by other firms

Last November, Ageas concluded the acquisition of a 25% stake in Taiping Reinsurance Company.

In June 2020, Munich Re’s ERGO Group agreed to buy a stake of 24.9% in Taishan Property & Casualty Insurance (Taishan Insurance), a property and casualty insurer based in Shandong, China.

Earlier last year, HSBC reached an agreement to acquire the remaining 50% equity stake in its life insurance joint venture in China.