Ping An Securities, the securities arm of Ping An (Group) Co, is
planning a joint venture fund management company with
Singapore-based UOB Asset Management, a company source said
yesterday.
"We are working on the plan with UOB Asset Management. In fact,
we've been preparing for a fund management company for quite a long
time. But we haven't submitted the application to the industry
regulator yet," the source said, refusing to elaborate.
As a unit of Singapore's United Overseas Bank, UOB Asset
Management is the largest asset management company in
Singapore.
"This move by Ping An proves its commitment to be a financial
holding company," said Luo Yi, an analyst with China Merchants
Securities. "Ping An's existing marketing channels will be the new
company's strong back-up. Meanwhile, the fund management company
could also sell Ping An's insurance policies."
However, Luo said he didn't think the fund management business
would be a big profit contributor to Ping An Group's overall
business though it will help Ping An Securities to expand into the
downstream business.
"It's more like a move to strengthen Ping An's framework to be a
financial holding company," Luo added.
Ping An, China's second largest insurer, has been seeking to
enter the fund management business after it expanded into
securities, banking and trust. Earlier last year, Ping An failed to
buy a 35 percent stake in Shenzhen-based Jutian Fund Management Co
when Morgan Stanley offered a much higher price for the stake.
In November, Ping An acquired a 9 percent stake in Hong
Kong-based asset management firm Value Partners, becoming its
strategic investor.
Besides Ping An, the country's largest life insurer China Life
is also actively preparing a fund management company.
Yang Chao, chairman of China Life, said in Nanjing in November
that the company has applied to the regulator to set up a fund
management company.
He also said China Life is in close contact with several foreign
investors that will be the fund management company's stakeholder,
but he declined to reveal their names.
"China Life has been fully prepared for being a financial
holding company. Once the policy go-ahead is obtained, we will make
big moves," Yang said.
(China Daily January 4, 2008)
