The China Securities Regulatory Commission approved a preparatory license for Merrill Lynch and Bank of China subsidiaries to form a mutual fund joint venture. Merrill Lynch Investment Managers, a unit of US-based Merrill Lynch, Bank of China International (China) and Bank of China International must seek final approval from regulators before their proposed JV can open for business.
The JV, BOC International Investment Managers, will be located in Shanghai and is expected to provide fixed-income and equity products. Merrill Lynch Investment Managers and Bank of China International will each hold a 16.5 percent share in the JV, with the remaining 67 percent held by Bank of China International (China).