Foreigners required for PRC bank funds biz

Regulators will demand Chinese banks find a foreign equity partner in order to access the mutual funds business.

Securities and banking regulators in China have made it clear to commercial banks that they must have a foreign equity partner in any fund management unit they establish, according to a variety of sources in Hong Kong and Shanghai.

This opens up a new opportunity for foreign fund houses looking to enter the market, but some analysts warn such deals may be a trap.

Industrial Commercial Bank of China ICBC is widely expected to be the first commercial bank to win approval from a host of regulators to set up a funds management business.

Other banks said to be keen are China Construction...

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