CICC plans to run trust firm
By Lydia Chen |
July 26, 2011, Tuesday
|
Print Edition
Print Edition
CHINA International Capital Corp will become the country's first investment bank to manage a joint trust company, which it is expected to launch later this week as the company seeks to expand its business into other areas.
CICC plans to buy a 35 percent stake in Zheshang Trust in Hangzhou, a company controlled by a department under the Zhejiang provincial government. CICC, which is partly owned by United States private-equity groups TPG Capital and KKR, will manage the joint trust company.
The move marks the Chinese firm's efforts to expand its business to more areas beyond underwriting because foreign rivals such as Morgan Stanley and Barclays have already bought stakes in Chinese trust firms, which have for the first time overtaken retail funds in terms of assets under management, KPMG said in a survey yesterday.
China now has 65 trust funds, which managed US$480 billion in assets last year, while mutual funds handled US$400 billion, KPMG added.
"Trust firms saw unprecedented growth rates in profits while assets under management for some companies doubled, and in other cases, tripled from 2009 to 2010," KPMG said.
Jason Bedford, a KPMG manager, said the firms "are also more effective in tapping into China's growing domestic personal wealth as the economy continues to boom."
CICC plans to buy a 35 percent stake in Zheshang Trust in Hangzhou, a company controlled by a department under the Zhejiang provincial government. CICC, which is partly owned by United States private-equity groups TPG Capital and KKR, will manage the joint trust company.
The move marks the Chinese firm's efforts to expand its business to more areas beyond underwriting because foreign rivals such as Morgan Stanley and Barclays have already bought stakes in Chinese trust firms, which have for the first time overtaken retail funds in terms of assets under management, KPMG said in a survey yesterday.
China now has 65 trust funds, which managed US$480 billion in assets last year, while mutual funds handled US$400 billion, KPMG added.
"Trust firms saw unprecedented growth rates in profits while assets under management for some companies doubled, and in other cases, tripled from 2009 to 2010," KPMG said.
Jason Bedford, a KPMG manager, said the firms "are also more effective in tapping into China's growing domestic personal wealth as the economy continues to boom."
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