SHANGHAI--State Street Corp. (STT) plans to set up a
fund-management company in China by establishing a joint venture
with a Chinese trust firm, the Chinese company's parent firm said
Thursday.
Jingwei Textile Machinery Co. (000666.SZ) said in a filing to
the Shenzhen Stock Exchange that its unit Zhongrong International
Trust Co. has agreed to set up the Beijing-based joint venture with
State Street's Hong Kong unit.
The new company will have registered capital of 300 million yuan
($47.7 million). Zhongrong will hold 51% of the joint venture, with
State Street owning the rest, the filing said.
The arrangement will need to be approved by China's securities
regulator, according to the filing.
Beijing has been stepping up its support for fund-management
companies' business as part of a broader campaign to ease
restrictions on its tightly controlled financial sector.
China has 73 fund-management companies, and more than half of
them are joint ventures between local and foreign companies.
Write to Amy Li at amy.li@dowjones.com
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