Hua Xia Bank, which is partly owned by Deutsche Bank, has announced its plans to set up a fund management joint venture with British-based F&C Asset Management Plc.
Based in Beijing, the JV will have RMB250 million (US$36.6 million) of registered capital and will be 70.5% owned by Hua Xia, 19.5% by F&C and 10% by another Chinese shareholder, according to the Chinese bank in a statement to the Shanghai Stock Exchange.
Hua Xia Bank added: The other shareholder is expected to be a state-owned Chinese company.
According to the Chinese bank, the venture will be engaged in fundraising, fund sales, asset management and other businesses approved by the China Securities Regulatory Commission.
F&C is a London-based company that manages more than EUR102 billion (US$132 billion) for more than three million private and corporate clients.
F&C’s Chief Executive Alain Grisay said earlier this month that his company was on the verge of finalising an agreement to establish a JV fund management company in China with the Hua Xia Bank: “We don’t expect to see any financial benefits in the short-term, but it gives us an option for when the markets recover,” he said.
By David Macfarlane
