The China joint venture of ABN Amro raised Yn2.6bn through its maiden fund sale. The amount was lower than the average Yn3.2bn raised by the dozen or so funds launched in 2002 but it managed to overcome negative equity market sentiment and the disruptive effects of Sars to raise slightly more than the Dutch firm had expected.
The fund, an open-ended umbrella portfolio, is managed by Beijing-based Xiangcai Hefeng Fund Management. ABN Amro is buying 33 per cent in the firm from its existing shareholders and Shanghai-based Xiangcai Securities will be the other shareholder.
JP Morgan to set up fund venture JP Morgan Fleming, the asset management arm of US finance services firm JP Morgan Chase, plans to set up a joint venture fund management company in China. The venture should be launched by early next year and it hopes to raise between US$400m and US$500m, depending on market conditions. The Chinese partner will be Shanghai International Trust and Investment Corp (Sitico), a subsidiary of the municipal government- owned Shanghai Industrial Group. JP Morgan will take a 33 per cent stake, the maximum allowed under current rules, with the intention of increasing this to 49 or 51 per cent as soon as the regulations permit. The US firm had helped Huaan Securities, a subsidiary of Sitico, launch the country's first Western-style mutual fund in 2001.