AMP signs strategic partnership with China Life

The company said the Chinese pension market was going through a period of significant changes, as the country's authorities made "a broader investment universe" available to pension funds.

In a statement, AMP said: "The size of the potential opportunity for AMP will depend on the future Chinese regulatory environment and agreement with China Life."

AMP chief executive Craig Dunn said: "AMP's agreement with China Life offers significant potential for AMP to grow its business in partnership with China Life in the world's fastest growing economy, with China's private pensions market expected to grow to A$1tr (US$933bn) by the year 2030."

AMP entered China in 1997, obtaining a Qualified Foreign Institutional Investor (QFII) license to trade in the country.

In October 2006, China Life Asset Management Company was appointed as AMP's local Chinese investment adviser for the QFII license. China Life Asset Management Company also sources infrastructure opportunities for AMP's Asian infrastructure funds.

The move comes after AXA Asia Pacific Holdings (AXA AP) rejected last week an A$11bn acquisition offer by AMP claiming it undervalued the company (Global Pensions, November 11, 2009).

At the time, AXA AP chairman Rick Allert said: "The proposal has been received against the backdrop of recent weakness in global financial markets and before the growth of our Asian operations is fully reflected in our profitability.

"The non-financial terms of the proposal also imposed excessive uncertainty and risk on AXA AP's minority shareholders."