AIG Global Investment Corp., an arm of American International Group Inc., announced that it has gotten initial approval to set up an asset management venture in China.

AIG is to own 33% of the $12.1 million joint venture with China’s Huatai Securities. Foreign companies like the Dutch insurance and banking giant ING and France’s Societe Generale have already established joint ventures in China to sell mutual funds.

The China market has $1.3 trillion of savings and deposits, but the nation’s equity markets have declined 20% since April. Assets under management in mutual funds have grown to more than $1.83 billion in the past five years.

Teh-Hsiu Fu, the former head of greater China for the asset management arm of Switzerland’s UBS AG, is to be the chief executive of AIG-Huatai Fund Management Co. in Shanghai.

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