AIG Global Investment corp. (AIGGIC), the investment arm of the American International Group Inc. (AIG), has received Chinese government approval to establish a joint venture fund management company in Shanghai.

The China Securities Regulatory Commission has given the go-ahead for AIGGIC, China's Huatai Securities and several other Chinese companies to establish the joint company.

AIGGIC and Huatai Securities will each hold 33 percent of the company's stock, while the remaining stock will be shared by three other Chinese companies.

The company will be registered in Shanghai and with a registered capital of 100 million yuan (about 12.05 million US dollars).

Joel Epstein, president of AIG China, said the company is gladto expand its business in China's booming fund market. The joint venture company will provide a series of quality investment products for both individual and institutional investors in China.

AIG is the biggest property insurance company and the second biggest financial group in the world. It established a wholly owned life insurance company in China in 1992.

AIGGIC was the 6th biggest fund management company in the world in 2003, with 400 billion dollars of assets under its management.

Assets of Huatai Securities totaled 8.72 billion yuan (about 1.05 billion dollars) at the close of 2003.

Source: Xinhua