ING Co-Founds China Fund Firm

ING Investment Management announced Monday that it has set up the first foreign joint venture fund company in China. ING said it acted in partnership with China Merchants Securities Co. to open the China Merchants Fund Management Co., based in Shenzhen. ING owns 30% of the venture but said it would like to increase its stake. The most that foreigners can own of a fund company in China is 33%, but the allowed stake is to rise to 49% in late 2005. China Merchants Securities of Beijing owns 40% of the venture and is to choose its chief executive officer. Three other partners, China Power Finance, China Huaneng Finance, and Cosco Finance, each own 10%.