BOC branches into fund management

With the approval of the China Securities Regulatory Commission, the International Investment Managers of the Bank of China (BOC) was officially established Thursday in Shanghai.

The Bank of China has therefore become the first Chinese commercial bank making an indirect investment in domestic fund management companies.

With a registered capital of 100 million yuan (about 12.05 million US dollars), the company's shareholders include the BOC International (China) Limited, the BOC International Holdings and the America-based Merrill Lynch Investment Managers.

With a stake of 67 percent, the BOC International (China) Limited is the company's largest shareholder while the remaining 33 percent is equally shared by the BOC International Holdings and Merrill Lynch, both of whom were first-time investors in China's fund management industry.

Chief Executive Officer Chen Ru of the International Investment Managers of the Bank of China said that the new company aimed to provide diversified assets management solutions to meet rising market demand. Right now, it is applying to relevant departments for its first fund management product.

The BOC International (China) Limited was jointly established by five domestic enterprises including the China National Petroleum Corporation, the State Development and Investment Corporation and the Yuxi Hongta Tobacco (Group).

Source: Xinhua