China Southern Fund Management and financial services group Oriental Patron have agreed to set up an asset management joint venture in Hong Kong, making China Southern the first mainland fund manager to expand abroad.
China Southern will pay HK$140 million for a 70 per cent stake in the new company CSOP Asset Management, while Oriental Patron will pay HK$60 million for 30 per cent of the issued share capital.
The venture, which is seen as a good strategic fit for both companies, is expected to herald a new wave of mainland fund managers attempting to tap international markets by setting up foreign operations.
'China Southern will keep pursuing its aim to become a large international asset manager. The approval of the Hong Kong subsidiary is a step towards speeding up this process,' general manager Gao Liangyu said in a statement yesterday.
'China Southern has the opportunity to expand its services into every corner of the world,' he added.
The mainland securities regulator approved the establishment of CSOP on June 27 but the venture was still pending a licence from the Hong Kong Securities and Futures Commission, Oriental Patron said in a statement released to the Hong Kong stock exchange yesterday.
