State Street enters funds management JV in China

State Street Global Advisers (SSgA) has entered a joint venture with Chinese company Zhongrong International Trust Co. (ZRT) to provide domestic China fund management activities.

The venture will launch and manage securities investment funds for retail, high net worth and institutional clients following the deal which saw SSgA acquire 49 per cent of the company's shares and ZRT 51 per cent.

SSgA's initial investment is approximately $50 million.

SSgA chief executive Scott Powers said the venture would allow SSgA to provide solutions to Chinese investors.

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"Building on our presence in Beijing, our goal is to continue to provide solutions to meet the unique and evolving challenges facing Chinese investors with industry-leading research and an experienced team of professionals," he said.

The Chinese Securities Regulatory Commission has approved the appointments of Gui Songleu as chairman of the joint venture board, Wang Yao as inspector general and Li Xuesong, former Bosera Fund Management deputy general manager and 20-year industry veteran, as general manager.

State Street has had a presence in Beijing since it developed its first office there in 2005. The company was later granted a branch licence from the China Banking Regulatory Commission in 2011. It established State Street Technology Zhejiang Co in 2005 to develop technology and business support services to support China's financial services infrastructure. It now has 1350 professionals in China.