INVESCO, a unit of AMVESCAP, said that it has received a Preparation License from the China Securities Regulatory Commission (CSRC) for its proposed joint venture fund management company.
By awarding the license, CSRC has given the green light to the formation of the joint venture company, which will be called INVESCO Great Wall Fund Management Company. INVESCO and Great Wall Securities will each take a 33% stake in the joint venture company. The rest of the holdings will be split evenly between two non-financial services companies, Kailuan Group and Dalian Shide Group.
The joint venture firm will be run by a senior management team and investment professionals experienced with the Greater China market. It is anticipated that INVESCO Great Wall Fund Management Company will begin operation in early 2003. The current plan is to launch a low-to-medium risk balanced fund as its first product, which invests in both domestic equities and bonds.