Qatar’s sovereign wealth fund has agreed to buy a 10% stake in China’s second largest mutual fund firm, China Asset Management Co (ChinaAMC), from Primavera Capital, according to Reuters, citing two people familiar with the matter.
The Qatar Investment Authority (QIA) has submitted its proposal to the China Securities Regulatory Commission and if approved, the wealth fund will become the third largest shareholder in ChinaAMC, the news agency says in the report published on June 5.
It follows news reports in March that said Citic Securities, which owns 62% of ChinaAMC, has decided to give up its right to purchase the 10% stake from Hong Kong-based Primavera Capital.
ChinaAMC managed over 1.8 trillion RMB (US$248 billion) of assets as of end-2023.
China is seeking to strengthen its relations with Arab states, President Xi Jinping said at a China-Arab States Cooperation Forum in Beijing on May 30. The move comes amid China’s ongoing tensions with the US and other Western nations.
Spokespersons for ChinaAMC declined to comment.
QIA had over $500 billion of assets under management as of end-2023.