Banking News
- Shanghai News
Date: 24-Jan-2007 Sources: (Shenzhen Daily)
SHANGHAI Pudong Development Bank (SPDB) said Monday it had received China Banking Regulatory Commission's approval to set up a fund management joint venture.
SPDB will cooperate with French financial firm AXA SA and Shanghai Dragon Investment Co. Ltd. to establish the joint venture, with SPDB holding a controlling stake of 51 percent, according to the bank's announcement to the Shanghai Stock Exchange (SSE).
'The fund management joint venture will expand our service range and deepen the integrated service,'said Shen Si, secretary of the SPDB board of directors, adding that the joint venture still needs approval from the China Securities Regulatory Commission. SPDB, part of the second trial batch of banks to set up fund management companies, submitted its application last year along with Agricultural Bank of China, Bank of China and China Minsheng Banking Corp. Ltd. SPDB posted net profit of 3.35 billion yuan in 2006, an increase of 31 percent on the previous year.
Analysts said the fund management joint venture would increase the bank's income from fee-based intermediate services, which accounted for only 5 percent of its total revenue in 2006. Qian Kun, an analyst at Changjiang Securities, said intermediate services that generate fee-based income would be a focus for mainland banks, which are trying to catch up with their foreign counterparts in diversifying the income base from loans.
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