ABN Amro's China Fund Joint Venture Plans Expansion to Tap into New Business Opportunities

As ABN Amro's China fund joint venture, ABN Amro TEDA Fund Management, looks to expand its capital base, it is positioning itself to tap into new business opportunities in the increasingly open Chinese market. The joint venture, which was formed in 2003, has recently undergone a change in ownership, with ABN Amro increasing its stake to the regulatory maximum of 49%. With 100 million yuan of registered capital and plans to have 11 billion yuan of assets under management, the joint venture is eyeing the institutional market, the pension market in China, and the QDII (qualified domestic institutional investors) market.

Key Takeaways:

• ABN Amro Xiangcai Fund Management, the joint venture, is planning to expand its capital base to support its growth and new business opportunities.
• The joint venture has increased its equity interest in ABN Amro Xiangcai Fund Management to the regulatory maximum of 49% after buying an additional 16% stake from Xiangcai Securities.
• ABN Amro TEDA Fund Management, the newly renamed joint venture, aims to have 11 billion yuan of assets under management and is eyeing institutional investors, pension funds, and QDII investors.
• New business opportunities include investment management services for state and voluntary corporate pension funds, foreign investors buying yuan-denominated mainland bonds and stocks, and investment management for the National Social Security Fund.
• The joint venture is also planning to increase its investments to tap into the QDII scheme, which has recently been opened up to insurance companies, banks, and fund managers in China.
• Tianjin TEDA, a shareholder in the joint venture, has investments in several other companies, including Bohai Bank, Bohai Securities, Heng An Standard Life, and BHCX Property & Casualty.

Sources:

• "Xiangcai Securities sells final stake in fund group to Tianjin TEDA unit" by Bei Hu (Source: not provided)
• "ABN Amro's China fund joint venture seeks expansion" by Bei Hu (Source: ABN Amro, dated yesterday)

Statistics:

• The joint venture, ABN Amro Xiangcai Fund Management, has a registered capital of 100 million yuan.
• The joint venture aims to have 11 billion yuan of assets under management by Friday.
• ABN Amro holds 49% of the joint venture, following its purchase of an additional 16% stake from Xiangcai Securities.
• The National Social Security Fund is a new business opportunity for the joint venture, along with investment management services for state and voluntary corporate pension funds.