Two of three major Chinese banks cleared to set up mutual funds on a trial basis had chosen foreign partners, domestic media said Thursday, in a move that opens the door for the lenders to tap new revenue sources.

The Industrial and Commercial Bank of China would team up with Credit Suisse First Boston and China Ocean Shipping (Group) Co., the China Securities Journal said.

The Bank of Communications would work with Schroder Investment Management and China International Marine Containers Co., it said.

The other bank planning a fund, China Construction Bank, had yet to fix its partners, the newspaper said.

It provided no other details of the partnerships. Bank executives were not immediately available to comment.

The Bank of China, Agricultural Bank of China, top listed lender China Merchants Bank Co. Ltd. and Shanghai Pudong Development Bank had also applied to set up mutual fund companies, the newspaper said.

The central bank said Wednesday the first three major banks could enter the mutual fund business.

The government aims to grant approval for the final establishment of the mutual funds by September. Central bank rules allow banks to invest initially in less risky money market instruments and bonds but analysts say they will eventually invest in Chinese stocks.

Commercial banks would be able to set up fund ventures that remained separate from their traditional operations and take on foreign strategic investors, according to central bank rules.

Source: Shenzhen Daily/Agencies