Prudential Financial Inc. and China-based Everbright Securities announced Sunday they had received a license to launch a fund product in mainland China under the name of a newly formed company, Everbright Prumerica Fund Management Company.
The new venture, which will be based in China, will be 67%-owned by Everbright and 33%-owned by Prudential. However, by late this year, Prudentials share could hop up to as much as 49 percent, thanks to a relaxation of rules China is expected to make stemming from its joining of the World Trade Organization in 2001. The company will have about 100 million yuan worth of registered capital, or $12 million in U.S. dollars.
Said Prumerica Financial Asia President Douglas Fergusson, "Our main purpose for the joint venture is to provide Chinese investors with a broad array of investment options and bring investment expertise coupled with technology transfer to this market." He said he thinks the new company will become productive early on.
Although only a handful of joint ventures exist in China, it is widely thought that the number will start growing. China only started allowing ventures between foreign and Chinese firms in 2002.
