TOKYO - Japan's Sumitomo Mitsui Banking Corp (SMBC) announced on Wednesday that it will acquire equity stake in China Post & Capital Fund Management Co, a Chinese asset management firm.

Sumitomo Mitsui will buy a 24 percent equity stake in the asset management firm from Beijing Chang'an Investment Group Co.

The Japanese bank said it aims to expand its asset management business in China where household financial assets are expected to increase. The acquisition was estimated to cost some 10 billion yen ($123 million).

SMBC said it will send a non-full-time executive director to the Chinese firm and make China Post & Capital an equity method affiliate to be covered by its consolidated financial statements.