In the first such deal involving a foreign player, Bank of Montreal will snap up 20 million new shares in Fullgoal
Fullgoal Fund Management has become the first established mainland fund manager to sell a stake to a foreign investor.
That its deal with Bank of Montreal (BMO) is the only co-operation pact between a domestic fund manager and foreign investor to become a full-fledged joint venture demonstrates how bumpy a ride foreign players have had in their forays into the China fund market.
Under a plan approved by the China Securities Regulatory Commission (CSRC) last week, BMO will buy 20 million new Fullgoal shares.
The Canadian bank and the Shanghai-based fund manager's five other shareholders - including Shanghai's Haitong Securities, China's largest brokerage by paid-up capital - will each own a 16.7 per cent stake after the deal.
Starting two years before China officially announced Sino-foreign fund management joint venture rules last June, several foreign suitors have courted mainland fund managers.