According to Reuters, Prudential will purchase the additional 16% stake from China-Singapore Suzhou Industrial Park Venture Company, which has been approved by the China Securities Regulatory Commission, the Ministry of Commerce and the State Administration for Industry and Commerce.
As a result, Prudential and CITIC remain the primary shareholders with 49% each, with China-Singapore Suzhou Industrial Park Venture Company holding the remaining 2%.
Current regulations in China limit foreign investors to a maximum of a 49% stake in a Chinese mutual fund management firm, Reuters revealed. According to the publication, China has one of the most rapidly growing fund management markets in the world, with total assets under the management of mutual fund companies in mainland China currently at CNY1.8 trillion.
Barry Stowe, chief executive of Prudential’s operations in Asia, said: We are pleased to have reached this latest milestone which underscores our continued commitment to our very successful partnership with CITIC, and the rapidly growing funds management industry in China.
Against our objective of building a material and profitable fund management business in China, CITIC Prudential will continue to capitalize on Prudential’s global investment management expertise as well as CITIC’s strong distribution capabilities and excellent local market knowledge, Mr Stowe continued.
