(Bloomberg) -- Europe’s largest asset manager is planning to set up a wholly-owned mutual fund business in China, according to a person familiar with the matter, beefing up its multi-pronged strategy in the country despite macro headwinds. 

Amundi SA has yet to decide whether the new entity will be based in Shanghai or Beijing, and hasn’t submitted a regulatory application, the person said, requesting not to be named because the matter is private. An external representative for the company couldn’t immediately comment on a query sent via email. 

The Paris-based $2.2 trillion manager is escalating its forays into one of the world’s fastest-growing wealth markets, where it’s been seeking to build a secondary home base. The company is turning more bullish on Chinese stocks, as it sees potential positive catalysts. 

Amundi is planning to more than double assets under management in China, Hong Kong and Taiwan by 2025, from about $120 billion, Greater China Chairman Zhong Xiaofeng said a year ago. The company’s wealth management joint venture with Bank of China Ltd. was approved by regulators in 2019, adding to a fund management venture with the Agricultural Bank of China Ltd. 

“Since April we have made a call to be overweight China and it has been the best choice,” Chief Investment Officer Vincent Mortier told Bloomberg in an interview in Singapore Wednesday. “We think it is still valid even though prices have gone up.” 

Chinese stocks will continue to do better as the nation’s Covid Zero policy could “disappear later this year,” regulatory pressures have become more stable, and the company is also “positive” on the Chinese currency in the medium term, he said. 

While Amundi is still cautious on big Chinese tech firms, it’s “liking part of the technology sector,” Mortier said, citing e-commerce and biotech without naming specific stocks.

The asset manager is also “selectively” positive on the real estate sector, believing Chinese authorities can handle the property crisis well, he added. 

The company trimmed China exposure during the first quarter’s selloff. It remains optimistic about the market even after a recent rally.

Amundi is adding more resources to win a bigger slice of China’s retail wealth management space that could grow to $3.4 trillion by 2023, according to estimates by Deloitte.

Competition is intensifying. Fidelity International Ltd. and Neuberger Berman Group have won approvals to set up wholly-owned fund units after BlackRock Inc. became the first global manager to launch such a business. Schroders and Van Eck Associates Corp. are still waiting for approval for their applications. 

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