Sat, Jul 06, 2013 - Page 14 News List

Cathay gets green light for cross-strait venture

By Crystal Hsu  /  Staff reporter

Cathay Securities Investment Trust Co (國泰投信), the fund management arm of Cathay Financial Holding Co (國泰金控), yesterday obtained the green light from China to set up a joint venture in Beijing with a Chinese peer.

With capital of 200 million yuan (US$32.6 million), the company would be the third fund house co-owned by Taiwanese and Chinese capital, Cathay Investment Trust said in a statement.

“We will soon recruit professionals specialized in market research, investment, fund settlement and information technology,” the Taipei-based firm said, adding that it would hire mostly Chinese employees.

China Development Bank Securities (國開證券), a subsidiary of China’s state-owned China Development Bank (CDB, 國家開發銀行), would have a 66.7 percent stake in the joint venture, while Cathay Investment Trust would take the remaining 33.3 percent, the statement said.

The venture would allow Cathay Financial to cash in on the growing demand for professional asset management services in China that target both institutional and private investors.

“China remains attractive with strong growth potential given consensus GDP growth forecasts of between 7 percent and 8 percent,” Cathay Investment Trust said.

The expansion reflects Cathay Financial’s plans to make asset management its third primary revenue driver, together with its banking and insurance businesses — Cathay United Bank (國泰世華銀行) and Cathay Life Insurance Co (國泰人壽).

This story has been viewed 1753 times.
TOP top