Cathay SITC gets green light to set up JV in China
08 July 2013
News, China, Taiwan
By Hui Ching-hoo
Cathay Securities Investment Trust Co (Cathay SITC) is to become the third Taiwanese fund manager to form an asset management joint venture (JV) on the Mainland. According to a report from the Commercial Times, the China Securities Regulatory Commission (CSRC) approved its application to form a JV with China Development Bank Securities (CDBS) on July 5.
Cathay SITC Vice President Peter Chiang told local media that the JV – China Development Cathay Fund Management (CDCFM) – will be headquartered in Beijing with registered capital of 200 million RMB (US$31.7 million). Cathay SITC owns a 33.3% stake while CDBS holds the remaining 66.7%.
The company will be officially launched by as early as September this year; its first fund is set to be unveiled in October.
Upon the completion of the deal, CDCFM will become the 82nd registered fund manager in China.
Fubon SITC and Yuanta SITC were the first Taiwanese fund managers to establish JVs in China following the signing of the Cross-Strait Economic Cooperation Framework Agreement (ECFA) in 2010.
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