Invesco, the Atlanta-based US fund manager, has seen its funds under management soar to $14bn in a tie-up with Alipay, a payments app run by Alibaba, the Chinese e-commerce giant.
According to the Financial Times, Invesco and Alipay signed an agreement in 2018. Under the agreement, Invesco manages a mutua fund on Alipay's wealth management platform. The platform allows customers to move money from their accounts and into managed funds.
Speaking to the FT, Martin Flanagan, chief executive of Invesco, said: "This is the highest growth possibility for asset management in the world right now - there is no question it's an incredible opportunity."
Since the start of the tie-up in June last year, Invesco has seen assets at its Chinese joint venture, Invesco Great Wall, increase four-fold. Invesco Great Wall's assets are now worth $31.5bn.
Invesco has a 49% stake in Invesco Great Wall, which the company set up in 1992. In recent years Beijing has moved to gradually open its financial and wealth-management market to foreign banks, insurers and fund houses. In August 2018, China scrapped foreign-stake limits in the financial sector.
The move, which realized a central reform Beijing pledged in 2017, gave foreign financial companies the same footing as local firms. Stakes were previously capped at 20% for a single foreign firm and at 25% for a group.