BIZCHINA / Center
AEGON, Industrial Securitie to form joint venture
By Wang Zhenghua (China Daily)
Updated: 2007-05-30 09:06
The Netherlands-based AEGON Group, one of the world's largest life
insurance and pension companies, has agreed to establish an asset
management joint venture with Industrial Securities Co, the two companies
announced yesterday.
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Under the agreement, AEGON will acquire a maximum 49 percent stake in the
company, to be called Industrial Fund Management Company. The rest will
be held by the Chinese stock brokerage, which is planning a domestic
listing by next year.
The deal, which awaits regulatory approval, grants the Dutch company
access to China's fast-growing fund management market and paves the way
for a foray into the nation's pension market that has yet to fully open
up.
China currently has 24 joint-venture fund management companies, including
China International Fund Management Co and ICBC Credit Suisse Asset
Management Co.
Donald Shepard, chairman and CEO of the executive board of AEGON, said
the company anticipates significant opportunities in the nation's fund
management market and has been looking for local partners that could
provide access.
"We believe there are significant opportunities opening up for the fund
management business in China. In the years to come, we believe this will
be a key part of AEGON Group's overall strategy," he said.
Figures released by the company suggest that total assets under
management reached $110 billion last year on the back of the bullish
Chinese stock market, which surged 83 percent from a year earlier.
The Dutch firm has another joint venture set up in 2003 with China
National Offshore Oil Corp (CNOOC). It is well-positioned for when
regulatory barriers are removed for private institutions to press into
the nation's emerging pensions and corporate annuities market.
"We look forward to bringing our expertise in the pension market to
China," Shepard said. "For the time being though, there are still steps
that have to be taken before there's a fully fledging pension market in
China."
Lan Rong, president and CEO of Industrial Securities, said yesterday his
company is preparing for a domestic listing, possibly this year or next,
either through an initial public offering of shares or via a "back-door"
listing through a merger with a company that is already listed.
"We believe that the securities industry and fund management in
particular will register a faster growth in China than the bank and
insurance industries," he said.
"In order to obtain a larger market share in the growing market it is
critical to team up with big and strong international companies to gain
global expertise."
(For more biz stories, please visit Industry Updates)
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