Deutsche bank is to enter the Chinese fund management market via a joint venture between Deutsche Asset Management and Harvest Fund Management Company.
The agreement will create the largest foreign joint venture fund management company in China to date. Harvest is a top three fund manager in China, as well as the countrys fifth largest mutual fund company amongst a domestic industry of 47 fund management companies.
DeAM will take a minority stake in Harvest, and has secured the right of first refusal to increase its ownership to the current regulatory limit of a 49 per cent foreign shareholding.
Harvest currently distributes a range of domestic equities and fixed income funds for both retail and institutional investors based in China.