The Beijing-based SSgA Fund Management Co Ltd will provide domestic China fund management activities for retail, high net worth and institutional clients, including launching and management securities.
The joint venture will expand on State Street’s existing Chinese presence, including a Beijing office established in 2005 and a subsidiary business in Hangzhou.
“Building on our presence in Beijing, our goal is to continue to provide solutions to meet the unique and evolving challenges facing Chinese investors with industry-leading research and an experienced team of professionals,” SSgA president and chief executive Scott Powers said.
The China Securities Regulatory Commission has approved senior appointments for the venture, including Gui Songlei as chairman of the board, Wang Yao as inspector general and Li Xuesong as general manager.
Mr Li will be responsible for the day-to-day management of the joint venture and has more than 20 years’ experience in the financial services industry.
“We aim to be a trusted partner to investors in China by providing solutions and guidance to help our clients preserve and grow their business,” Mr Li said.
Zhongrong International Trust holds a 51 per cent share in the company, with State Street Global Advisors Asia holding the remaining 49 per cent.
SSgA’s initial financial contribution is expected to hit $50 million.
