US fund house Ivesco plans to set up a joint venture with Great Wall Securities in Shenzhen,after severing its relationship with Penhua Fund Management, South China Morning Post reported. Ivesco had been expected to form a joint venture with Penghua, to which it had been acting as a
technical adviser for two years, but the two could not agree on the role that the US partner
would play in any new venture.
The venture with Great Wall will have initial capital of Yn100m, of which Ivesco will hold 33 per cent, the maximum currently permitted in China. The venture, to be called Ivesco Great Wall, would initially launch retail funds for investors, but in future would hope to manage pension funds and become involved in schemes allowing foreigners to invest in the domestic stock market.