China Securities has become the mainland's third brokerage to receive permission to begin a fund management business following China Southern Securities and China Guotai Securities, officials said.
An official from the Beijing-based securities firm last night said it had obtained China Securities Regulatory Commission approval on Tuesday to operate a fund management company to operate closed-end mutual funds.
The approval follows the successful launches of the Kaiyuan Fund in Shenzhen and the Jintai Fund in Shanghai two weeks ago.
These attracted subscriptions of 160 billion yuan (about HK$148.91 billion). Their debut on Tuesday was aggressively traded and chalked up rises of at least 35 per cent.
The China Securities official said it would set up China Fund Management with a registered share capital of 70 million yuan, alongside the newly expanded Beijing Securities Corp and a trust and investment arm of the Chinese Academy of Sciences.
China Securities would take a 55 per cent stake in the firm, with Beijing Securities Corp a 38 per cent stake, and the Chinese Science and Technology International Trust and Investment Corp, the remaining 7 per cent.
