In a move to comply with the Chinese mutual fund regulations, BNP Paribas, the France-based lender, is mulling to sell its 49% stake in ABN AMRO TEDA Fund Management (TEDA) in China – reported Reuters.
Reportedly, China forbids foreign investors from holding more than one fund venture. However, after acquiring Fortis earlier this year, Fortis Haitong Investment Management had come under its holding. Besides, currently it owns SYWG BNP Paribas Asset Management and Fortis Haitong Investment Management also. As a result, it is planning to exit from two joint ventures to comply with Chinese mutual fund regulations.
In an e-mail to the news agency, Christine Chan, spokeswoman of BNP Paribas Hong Kong, said: “We are currently reviewing the situation and all potentially viable options are being weighed. We will announce definitive plans once we are at liberty to do so.”
Liang Jing, an analyst at Guotai Junan Securities, commented: “China’s fund market has a huge potential and is attractive to foreign fund houses. Buying into an existing venture is a short cut for investors seeking a valuable license in China,” reported the news agency.
