has won approval to enter the Chinese fund market. The unit of London-based Amvescap plans to create a joint venture with Great Wall Securities
acting as its local partner. The plan was green lighted yesterday by the China Securities Regulatory Commission (CSRC)
, the regulatory body overseeing the nascent fund industry in China.
Invesco had applied for the Preparation License in August of 2002.
The new venture expects to open its doors in the next few months and will operate as Invesco Great Wall Fund Management Company. Invesco and Great Wall Securities will each take a one-third stake in the joint venture company. The remaining shares will be split evenly between Kailuan Group and Dalian Shide Group. "This is a true equal partnership, which is reflected in the equity holdings and corporate governance structure," said Andrew Lo
, chief executive of Invesco's Asia Pacific operations in a statement.
Lo added that the venture is "integral" to Invesco's strategy in Greater China. "We have operated in Hong Kong since 1970 and in Taiwan since 1988. This fully demonstrates our long-term commitment to these populous and fast-growing markets. With the joint venture company, that commitment will only grow even stronger in the future," said Lo.
Senior management team and investment professionals experienced with the Greater China market will run the new venture. Invesco says the first product on the new firm's production schedule is a low-to-medium risk balanced fund investing in both Chinese equities and bonds.
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