State Street Plans Fund-Management Joint Venture in China

SHANGHAI--State Street Corp. (STT) plans to set up a fund-management company in China by establishing a joint venture with a Chinese trust firm, the Chinese company's parent firm said Thursday.

Jingwei Textile Machinery Co. (000666.SZ) said in a filing to the Shenzhen Stock Exchange that its unit Zhongrong International Trust Co. has agreed to set up the Beijing-based joint venture with State Street's Hong Kong unit.

The new company will have registered capital of 300 million yuan ($47.7 million). Zhongrong will hold 51% of the joint venture, with State Street owning the rest, the filing said.

The arrangement will need to be approved by China's securities regulator, according to the filing.

Beijing has been stepping up its support for fund-management companies' business as part of a broader campaign to ease restrictions on its tightly controlled financial sector.

China has 73 fund-management companies, and more than half of them are joint ventures between local and foreign companies.

Write to Amy Li at amy.li@dowjones.com

Source: http://www.nasdaq.com

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