CITIC Securities to sell China AMC stake

CITIC Securities is looking for investors to buy part of its 100% stake in fund manager China Asset Management Co (China AMC), the Financial Times reported, citing sources familiar with the matter. Chinese regulations do not permit single shareholders in fund management firms to own stakes larger than 49%; CITIC said in January 2009 that it would comply with the rules within six months. The company is said to be courting foreign financial institutions because the 49% ownership cap is increased to 75% if a fund management company has a foreign shareholder. Local media reports said that Morgan Stanley and China International Capital Corp (CICC) were both potential buyers, although CICC denied it was involved in a possible stake purchase.