China's securities regulator announced Monday that it has approved the establishment of the mainland's first fund management firm involving a major commercial bank.

The regulator, China Securities Regulator Commission, said in a press release that it has approved the Industrial and Commercial Bank of China to set up a fund management firm in cooperation with CreditSuisse First Boston.

The Chinese bank, the biggest commercial bank in China, contributes 55 percent of the registered capital of the firm, while CreditSuisse First Boston contributes 25 percent of the registered capital of 200 million yuan (24 million US dollars). China's shipping giant COSCO Group also owns 20 percent of the registered capital.

An official with the regulator said the approval represents an effort by the commission to boost institutional investor and increase the flow of investment into the country's capital market.

The official said preparation is now underway for China Construction Bank and Bank of Communications to set up their own fund management firms.

Source: Xinhua