Colonial’s Chinese venture
The Commonwealth Bank ofAustralia’s (CBA) fund management arm Colonial First State Asset Management has announced a joint venture with China Cinda Asset Management Corporation (Cinda).
Cinda is one of four Chinese state-owned asset management companies managing the non-performing loans of China’s major commercial banks.
Targeted specifically to Chinese investors in the retail domestic equity and fixed interest market, the First State Cinda venture is part of the CBA’s wider strategy within the region. The CBA already has holdings in two Chinese banks, and sees this partnership as an additional opportunity to expand globally.
“The launch of First State Cinda forms part of Colonial First State Global Asset Management’s longer term strategy of identifying and developing attractive growth opportunities,” said Colonial First State chief executive Warwick Negus. “This venture will undoubtedly benefit from Cinda’s existing relationships with large institutions and corporations, as well as its strong connection with the financial services industry.
Following approval from the China Securities Regulatory Committee, the first fund is due to launch later this year. Located in Shenzen and Beijing, the offices have already employed 40 staff.
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