UOB, Allianz, GIC SI Decide to Participate in China's Assets Management MarketThree financial institutions operating in Singapore have decided to participate in the asset management market in China, according to a joint press release Thursday, December 21.The United Overseas Bank (UOB) Group of Singapore, the Allianz Group of Germany and GIC Special Investment (GIC SI), the private equity investment arm of the Government of Singapore Investment Corporation (GIC) have entered into Heads of Agreement to participate in the asset management market in China and are working towards reaching a final agreement on forming a consortium, the press release said. It also said that GIC SI became a party of the joint venture months after the UOB signed a 50:50 joint venture agreement with the Allianz in September 2000 to explore asset management opportunities in China and GIC SI's participation in the joint venture days ago led to changes to the arrangement of holdings among partners in the consortium. Under the new arrangement, UOB and the Allianz respectively have the 40 percent of the holdings, while the other 20 percent is for GIC SI. The three joint venture partners are committed to establishing and operating a third party asset management business in China and are seeking an established local Chinese partner to form an asset management company based in China to apply for the license from the relevant department of the Chinese government, just as required by the Chinese regulation. A public relations officer from the UOB said that the actual formation of the new company, inclusive of the Chinese local partner, will most likely be announced within the first half of the next year. UOB Group's Deputy Chairman & President Wee En Cheong was quoted as saying that he is confident of success in growing the asset management business in China. GIC SI's President Teh Kok Peng was also quoted as remarking that "the fund management industry in China is still at a nascent stage but offers huge growth potential." |
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