The pension fund business in Hong Kong is being considered for sale by Principal Financial Group Inc.
The company is working with an adviser to find out if there is interest in the assets. The people said that a sale could bring in interest from insurers and banks looking to expand in the Asian financial hub.
The people said that Principal could still decide against pursuing a deal because of the early stages of deliberations. A person for Principal wouldn't say anything.
Hong Kong's mandatory provident funds system lost HK$178.6 billion in the year to the end of August due to China's industry reforms and Covid Zero policy. The biggest asset class in the system is Chinese and local stocks.
According to a recent press release, Principal has over $600 billion in assets under management as of the end of June. It has more than 54 million customers around the world.
Investment and retirement services were provided to businesses, individuals and institutional investors by the firm in Hong Kong. As of the end of March, it had the seventh largest market share among pension fund managers in Hong Kong. Among the firms in the survey, Principal is behind some of them.
Matthew Monks assisted.
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