1st Nov 2005 08:30
HSBC Holdings PLC01 November 2005 HSBC RECEIVES APPROVAL FOR JOINT VENTURE FUND MANAGEMENT COMPANY IN CHINA HSBC Investments has obtained approval from the China Securities and RegulatoryCommission (CSRC) to establish a joint venture fund management company in Chinawith Shanxi Trust and Investment Corporation Limited (Jintrust). The new company, to be named HSBC Jintrust Fund Management Company Limited, willbe headquartered in Shanghai and capitalised at RMB200 million (approximatelyUS$24.7 million). HSBC Investments will take up 49 per cent of the equity in thenew company for a consideration of RMB98 million (approximately US$12 million).Jintrust will take the remaining 51 per cent in the joint venture company.HSBC's consideration will be met by HSBC Group internal cash resources andinjected as capital into the joint venture company. Blair Pickerell, Chief Executive Officer, Asia-Pacific at HSBC Investments,said: "We have been working closely with Jintrust to put into place thenecessary groundwork to establish the new fund management company. It will beoperated to international standards, with the full backing of HSBC'sinternational asset management expertise and Jintrust's on-the-ground marketknowledge. We have a team in place already and expect to launch our first fundunder the new joint venture company in early 2006." Yang Xiao Yong, Vice-Chairman of Shanxi Trust and Investment Corporation Limited, added: "The fund management industry is a rapidly growing sector in mainlandChina. By teaming up with one of the largest foreign players in mainland China'sfinancial markets and sharing a long-term goal of establishing a well-managed,investor-focused fund management firm, we believe HSBC Jintrust will become asignificant player in this developing market." Notes to editors 1. Shanxi Trust and Investment Corporation Limited (Jintrust)Jintrust was established in 1985 by the Shanxi Provincial Government. It is thelargest non-bank financial institution in Shanxi Province, with assets of RMB7.5billion at end-2004. Jintrust manages trust funds, has underwritten governmentand corporate bonds and manages state-owned assets for its parent and for anumber of agencies in Shanxi. 2. HSBC InvestmentsHSBC Investments is the core global investment platform of HSBC which providesinvestment solutions to personal and corporate investors. It meets client needsby leveraging its in-house investment capabilities in active, quantitative andstructured investments or those of the best-of-breed managers in the marketthrough its multimanager capability. HSBC Investments and its affiliatedinvestment companies had funds under management of more than US$256 billion at31 August 2005. 3. HSBC in mainland ChinaEstablished in Hong Kong and Shanghai in 1865, HSBC has had a continuouspresence in China for 140 years. Reflecting its long-term commitment to thecountry, HSBC moved its China head office from Hong Kong to Shanghai in May2000. HSBC has the largest branch network among foreign banks in mainland China,comprising 12 branches in Beijing, Chengdu, Chongqing, Dalian, Guangzhou,Qingdao, Shanghai, Shenzhen, Suzhou, Tianjin, Wuhan and Xiamen, and sevensub-branches in Beijing, Guangzhou, Shanghai and Tianjin. HSBC's investments in China include stakes in Bank of Shanghai (8 per cent),Ping An Insurance (19.9 per cent), Bank of Communications (19.9 per cent) and ajoint-venture investment with Ping An in Ping An Bank (27 per cent). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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