South Korea’s Samsung Asset Management said it will seek to establish a joint venture with China’s CCB Principal Asset Management to operate exchange-traded funds in China.

The nation’s largest asset management firm, with 200 trillion won ($167 billion) assets under management, said it has agreed to provide advisory for three to five new ETF products to be launched under the Chinese company within this year. 


The Korean company also agreed to establish an advisory services provider in Beijing by September to prepare for the establishment of the joint venture.

Beijing-based CCB Principal Asset Management, a subsidiary of China Construction Bank Corp., holds 120 trillion won AUM, according to the Korean company.

The ETF market in China is in its nascent stage but its volume is expected to grow to 180 trillion won by 2020 from the current 85 trillion won, an official at Samsung Asset Management said.

By Kim Yoon-mi (yoonmi@heraldcorp.com)