Chinese mutual fund manager Huaan Fund Management and smaller rival HFT Investment Management, both controlled by Guotai Haitong Securities (2611), will merge due to regulatory caps on asset management licenses, Chinese newspaper 21st Century Business Herald reported on Thursday, citing sources.
The final merger plan will be announced later this month or in early April, the newspaper said.
The companies said they could not immediately comment when contacted by Reuters.
Chinese regulators have been encouraging consolidations in the financial industry to create globally competitive banks and asset managers.
Last year, Guotai Huaitong was created after Guotai Junan Securities acquired rival Haitong Securities. State-owned CICC said it would take over Dongxing Securities and Cinda Securities.
A Chinese company is barred by rule from having controlling stakes in two mutual fund managers.
Huaan is also reshaping its leadership ahead of the merger, the newspaper reported, saying Yan Tao - formerly an assistant general manager at Changjiang Pension - is set to join as deputy general manager.
Huaan is China’s 16th biggest mutual fund company with more than 800 billion yuan (HK$905.7 billion) of assets under management.
HFT Investment, partly owned by PNP Paribas, has about 250 billion yuan in assets under management.
Reuters
