Schroders will establish a fund management joint venture in China with two mainland partners, the British asset manager said on Friday.

The $205 billion global money manager will own a 30% stake in the venture, which counts Chinese lending giant Bank of Communications as one of its partners. Bank of Communications, which will command a 65% share of the venture, plans a $1.9 billion IPO for later this month. The other principle stakeholder is China International Marine Containers Group. The venture has applied for regulatory license, Schroders officials said.

According to Reuters, Schroders joins a recent spate of international investors, including Merrill Lynch and AIG, which are hoping the catch China's $40 million fund industry in its infancy. To further growth, Beijing recently eased investment rules and on Thursday its securities regulator said fund management firms would now be allowed to invest their own assets in mutual funds. China also announced approval last week of its first bank-run fund manager, a venture that includes Credit Suisse First Boston.

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