Qatar Investment Authority agrees to buy 10% stake in China asset manager, says report

Doha, Qatar: An exclusive Reuters report released today, June 4, stated that Qatar s sovereign wealth fund is in talks to acquire a 10% stake in one o...

Doha, Qatar: An exclusive Reuters report released today, June 4, stated that Qatar's sovereign wealth fund is in talks to acquire a 10% stake in one of China's largest mutual fund company, China Asset Management Co (ChinaAMC). 

According to Reuters' sources, the Qatar Investment Authority (QIA) has agreed to buy the stake in ChinaAMC from investment firm Primavera Capital. While financial details remain undisclosed, the deal is subject to regulatory approval in China. 

If approved, the acquisition would position QIA as the third-largest shareholder in ChinaAMC, which manages over 1.8 trillion yuan ($248 billion) of assets, and provides mutual funds and exchange traded funds to retail and institutional investors.

The report added that the proposal is in line with QIA's aim to become a world-class investment institution, eyeing the deal to give it access to China's fast-growing, $4.3 trillion mutual fund industry.

It's not clear whether the Chinese regulators would approve QIA's planned stake purchase, said the sources who have knowledge of the situation, nor how long it would take for such a decision to be made.