Credit Agricole is set to receive the go-ahead for a domestic fund management joint venture with Agricultural Bank of China (ABC), the Financial Times reported. The joint venture is expected to have registered capital of US$25.6 million, with Credit Agricole taking a 33.7% stake, ABC 51.3% and aluminum producer Chalco 15%. The deal involving the smallest and weakest of China's Big Four state lenders may lead to mutual fund joint ventures with second-tier Chinese banks. For example, Shanghai Pudong Development Bank is on course to receive regulatory approval for a fund partnership with French insurer Axa. Industry consolidation is also expected with new entrants acquiring existing domestic fund houses, of which there are about 58.
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