Goldman Sachs plans to double its workforce in China in the next five years, increasing its headcount on the mainland to as many as 600 people, as Beijing continues opening up its financial markets.
The expansion ambition is part of a five-year plan, according to Bloomberg, engineered by senior management in New York. The expansion would be contingent on Goldman receiving majority control and eventually full ownership of its security brokerage joint venture on the mainland, as well as Beijing continuing to further open up its financial markets, said the person, who was not authorised to discuss the matter publicly.
"Goldman spent last year's latter half honing its expansion plan," the source said. "In behind-the-scenes talks, senior government officials signaled growing urgency to use capital markets, rather than the country's banking system, to support corporate China as a trade dispute with the US weighed on the economy."
Goldman spent last year's latter half honing its expansion plan"
Soon after being appointed as the bank's new chief executive, David Solomonasked for a detailed expansion strategy in China over the next five years to tap into the $45trn financial market.
Goldman is in the process of applying to boost its stake in an investment bank joint venture based in mainland China to 51% from 33% and will go for full control if permitted by year-end.
Part of the bank's expansion in China will be driven by "explosive" growth in asset management, Leland said. Chinese households are sitting on about 90 trillion yuan ($13trn) in investable assets.
The bank also is looking to expand its wealth management business as it seeks to broaden its revenue streams.