According to the two firms, BNP Paribas has acquired Chinese regulatory clearance to begin developing an asset management joint with Agricultural Bank of China, allowing the French giant to enter a $4 trillion industry.

According to an AgBank stock exchange announcement late Monday, the China Banking and Insurance Regulatory Commission has granted preliminary clearance for BNP and AgBank, China’s third-largest lender by assets, to launch a new joint venture.

BNP confirmed the preliminary clearance, which came in the form of the CBIRC formally confirming the two businesses’ application for a final license to operate in the market.

The French corporation will control 51% of the venture, with the remainder held by state-owned AgBank.

According to Reuters, BNP’s asset management arm is in negotiations with an AgBank affiliate to launch a wealth management business, taking advantage of China’s opening of its financial markets to foreigners.

BNP Paribas Asset Management and ABC Wealth Management, a wealth arm of AgBank, will fund the new platform, according to Monday’s filing.

Since China deregulated financial markets in 2019, allowing foreign asset managers to set up majority-owned ventures with local banks, a flurry of foreign firms including BlackRock and Amundi have launched majority-controlled units locally.

Other foreign firms such as Barclays and Allianz are also exploring this and trying to find local partners.