AMP Capital and China's biggest insurer China Life will set up a new funds management company in China to manage some of the $800 billion on offer. AMP will hold a 15 per cent stake in the new China Life AMP Asset Management Company and the balance will be held by China Life Asset Management Company, which is a subsidiary of China Life Insurance Company.
China Life is China's largest insurance group, institutional investor and corporate pension manager.
"Total assets under management in China's mutual fund industry is expected to reach $0.8 trillion in 2013 growing at 15 per cent per annum to reach almost $1.5 trillion in 2017," AMP said.
The deal will be China Life's first joint venture in mainland China with a foreign partner in funds management. Recent regulatory changes in China mean insurance companies can make funds management companies offering public funds to retail and institutional investors.
The joint venture has to get regulatory approval by the China Securities Regulatory Commission.
AMP chief executive Craig Dunn said the deal would give the company direct access to the world's second largest and fastest growing major economy. "The funds management joint venture represents the commercialisation of our memorandum of understanding with China Life and is the ideal balance of our mutual strengths and capabilities," Mr Dunn said.
With the JV, AMP Capital now has an institutional and retail presence in Australia, China and Japan.
China Life is China's largest insurance group, institutional investor and corporate pension manager.
"Total assets under management in China's mutual fund industry is expected to reach $0.8 trillion in 2013 growing at 15 per cent per annum to reach almost $1.5 trillion in 2017," AMP said.
The deal will be China Life's first joint venture in mainland China with a foreign partner in funds management. Recent regulatory changes in China mean insurance companies can make funds management companies offering public funds to retail and institutional investors.
The joint venture has to get regulatory approval by the China Securities Regulatory Commission.
AMP chief executive Craig Dunn said the deal would give the company direct access to the world's second largest and fastest growing major economy. "The funds management joint venture represents the commercialisation of our memorandum of understanding with China Life and is the ideal balance of our mutual strengths and capabilities," Mr Dunn said.
With the JV, AMP Capital now has an institutional and retail presence in Australia, China and Japan.