China Southern Oriental Patron Asset Management Co, the first overseas joint-venture fund on the mainland, has applied for approval from Hong Kong Exchanges to launch its asset-management business.

China Southern Fund Management Co holds a 70-percent stake in the HK$200-million (US$25.6 million) company and Oriental Patron Financial Group has the balance, China Southern Fund Management said on its Website yesterday.

Initially, CSOP Asset Management will manage the Hong Kong-listed stock portfolio for China Southern's Qualified Domestic Institutional Investors fund.

Set up in 1998, China Southern is among China's biggest fund companies and was the first to sell products under the QDII scheme in 2007.

Oriental Patron was set up in 1993 and currently manages assets worth several billion US dollars.

The new venture aims to be a gateway for institutional investments flowing into and out of China. It will advise or partner with international investors in China as well as seek overseas opportunities for domestic investors.

Chang Huifeng, CEO of CSOP Asset Management, said the company will manage a series of private equity funds and public offering funds in the future. Later this year, it plans to seek overseas investment products such as hedge funds and private equity funds for domestic institutional investors.

Chang had worked at Citigroup's headquarters in New York before heading CSOP Asset Management.

(Shanghai Daily July 9, 2008)