ING Investment Management and China Merchants Securities are pleased to announce that they have received approval from the China Securities Regulatory Commission to establish a joint venture fund management company in China.
ING and China Merchants Securities Co. Ltd. will be the two main shareholders in the joint venture, which is proposed to be called China Merchants Fund Management. The company will be based in Shenzhen and is expected to start operations in the first quarter of 2003.
China Merchants Fund Management will have registered capital of RMB100 million. China Merchants Securities will own 40 per cent of the company, ING will have a 30 per cent holding, China Power Finance Company will own 10 per cent, China Huaneng Finance will own 10 per cent and Cosco Finance will own 10 per cent.
'We are delighted to have won approval for one of the first foreign joint venture fund management companies to be established in China. With China Merchants Securities and our other China partners I am confident that we will be able to build a long-term, profitable fund management business in China,' said Chris Ryan, Regional Director â€“ North Asia, ING Investment Management.
The approval by the CSRC follows the establishment of a technical cooperation agreement signed between ING and China Merchants Securities in October 2001, under which ING agreed to give technical support and advice to the future joint venture fund management company.