BEIJINGHONG KONG, June 24 Reuters Allianz Global Investors AGI, one of the investment arms of German insurer Allianz, has become the first foreign company to own a stake in China39;s pension insurance giant Guomin Pension.

AGI was allowed to subscribe to newly issued shares representing 2 in the company, and the stake is worth 228 million yuan 31.40 million, the pension firm said in a statement issued Monday.

Guomin Pension, jointly launched by China39;s largest banks and insurers, was established in 2022 to promote the development of the country39;s private pension market.

The pension giant39;s registered capital will rise to 11.4 billion yuan with AGI39;s investment, making it one of the most capitalheavy asset managers in China.

Global financial firms have in recent years sought to take part in China39;s nascent private pension sector, which is seen as potentially lucrative as public pensions shrink and the population ages.

Allianz39;s purchase comes two months after it won final approval to launch a 100owned fund unit in China catering to onshore retail and institutional investors, and potentially pensioners.

1 7.2617 Chinese yuan renminbi

Reporting by Beijing and Hong Kong newsroom, Editing by Louise Heavens and Miral Fahmy

Source Reuters