RBC announces China joint venture

31 October 2006

Royal Bank of Canada (RBC) is to set up a $25 million mutual fund management company in China as a joint venture with China Minsheng Banking Corporation, it has been announced.

RBC is set to take a 30 per cent share in the new company, which will create manage and sell mutual funds to retail and institutional investors in mainland China.

"This exciting initiative provides us with an entry point into the rapidly expanding Chinese asset management market," commented George Lewis, chairman and chief executive of RBC Asset Management.

Hong Qi, executive vice president of China Minsheng Bank, added that the fund management market in China was "poised for growth", making it a perfect time to establish the joint venture with RBC.

"It also serves to reinforce the growing realization that Chinese capital markets offer good potential investment value," he added.

RBC becomes the latest western financial institution to set up a Chinese fund venture, with Schroders and Allainz among the others.

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