Spain's Santander Group has acquired a 20% equity stake in Bank of Shanghai Fund Management, creating a new Sino-foreign joint venture in China's public fund market as of April 17.
The move is seen as an active measure to optimize the governance structure of the public fund, injecting an international dimension into a firm previously known as a stable, bank-backed domestic asset manager. The equity change has received approval from the China Securities Regulatory Commission and all industrial and commercial registration changes are now complete.
Following the transfer, Bank of Shanghai's stake is reduced to 80%, with a capital contribution of 240 million yuan, while Santander Investment Holdings now holds the remaining 20% for 60 million yuan, making it the second-largest shareholder. As of the end of 2025, Bank of Shanghai Fund managed 165.1 billion yuan in non-money market assets, ranking 31st in the industry.
This partnership provides Santander, a major Spanish and Latin American financial group founded in 1857, a direct entry into China's vast asset management sector. For Bank of Shanghai Fund, which secured a Qualified Domestic Institutional Investor (QDII) license in 2023, the deal opens a path to leveraging Santander's global network to build a "second growth curve" beyond its traditional fixed-income products and offer more diversified cross-border investment tools.
The new shareholder, Santander Investment Holdings S.L., is a subsidiary of Santander Group. Established in 1857, the group is a dominant financial force in Spain and Latin America, with approximately 178 million customers worldwide. According to The Banker magazine's 2023 rankings, Santander was the 20th largest bank globally by Tier 1 capital.
Bank of Shanghai Fund was established in August 2013 as a domestic joint venture between Bank of Shanghai (90%) and China National Machinery Industry Group (10%). In July 2023, Bank of Shanghai acquired the remaining 10% to become the sole owner. The recent sale of a 20% stake to Santander marks the third phase in its ownership evolution, transforming it from a domestic entity into a Sino-foreign joint venture.
This article is for informational purposes only and does not constitute investment advice.
