US Fund Manager To Buy Stake In China AMC

Vanessa Doctor

16 March 2010

T Rowe Price, the US-based fund management company, is in advanced talks to purchase a stake in China Asset Management Co, sources cited by Reuters reveal.

Chinese regulators had told Citic Securities to let go of its 51 per cent interest in China Asset Management, which has been estimated to be worth over 9 billion yuan ($1.32 billion). Under Chinese law, foreign investors can own only up to 49 per cent of a Chinese fund firm.

It remains unknown how big a stake T Rowe is interested in. China AMC manages over 260 billion yuan and contributes greatly to Citic Securities' revenue.

T Rowe Price had declined to comment on the matter.