FRANCE/CHINA - French investment house BNP Paribas Asset Management is the latest player to enter into a joint venture in China as the race to cash in on the country's potentially lucrative fund marketplace continues.
The firm has entered into an agreement with Shenyin and Wanguo to set up the joint venture - SW BNP Paribas Asset Management - building on an existing relationship since 2000.
The tie-up will be registered in Shanghai with capital of Renminbi 100m .
Commenting on the move, BNP Paribas said: “The JV will benefit on the one hand from the local partner’s expertise in aspects such as sales network and research and on the other hand from the French partner’s experience in areas such as advanced technology, product design, investment management and risk control.”
As part of the deal, Shenyin & Wanguo will hold a 67% stake while BNP Paribas will own the remaining 33%.
The firm will handle both traditional and structured products.
Shenyin & Wanguo already has some RMB4.216bn under management and boasts a network of 109 branches and 32 investment service centres across China. In June 2003 the firm obtained the agency mandate of the first ever QFII1 (Qualified Foreign Institutional Investor) in China.
Recent estimates show that the China A-share market has a market cap of about US$500bn compared to the B-share market valued at US$10bn. Other European investment houses to poised to pounce on this share include ABN Amro, Allianz, Fortis and UBS who have all entered into similar agreements in recent times.
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