New capital rushes to fund sector

All kinds of capital is rushing into the fund sector with the first insurance company invested fund company waiting to be approved and China International Capital Corp Ltd applying to launch its own fund company.

The monthly public notice list of fund company application released by China Securities Regulatory Commission at the end of September showed the application for the launch of the fund company by China Life Insurance Co and AMP Capital Investors Limited was approved within two months.

The China Life and AMP Capital Investors Fund will be the first fund company launched by insurance asset management companies directly in China. The founder is China Life with a share of 85.03 percent. AMP Capital will be a foreign shareholder of the company, which is registered in Shanghai with capital of 588 million yuan ($96.06 million), making it the fund company with the highest registered capital.

CICC also submitted an application for a fund company holding 100 percent shares to the CSRC in September. The notice list showed the CICC Fund Management Company under CICC was registered in Beijing and the application had been accepted.