China’s second largest brokerage, Guotai Junan Securities, plans to set up a joint venture fund management company with German insurer Allianz, South China Morning Post said. The two sides have signed a memorandum of understanding to set up a working party to study the issue.
Guotai Junan would also sign an agreement to transfer to Allianz the rights and obligations under its technical co-operation pact with Dresdener Bank. Allianz took over the German bank in 2001.
US-based Prudential Insurance has signed a letter of intent with Everbright Securities to set up a fund management company once China’s rules on joint ventures in the finance sector have been announced. Prudential would also act as advisor to a separate mutual fund management company that Everbright plans to launch.