Feb. 9, 2007 (China Knowledge) – China Jianyin Investment Ltd. Co. has signed an agreement to purchase a 24% stake in Guotai Asset Management Co. (Guotai AMC) from its existing shareholder, Shanghai State-owned Assets Operation Co. Ltd., marking the first time Jianyin is investing in a fund management company.

Established in 1998, Guotai AMC is one of the first five fund houses to be established in China. The company is currently managing 12 funds with asset under management of RMB 16.63 billion. As of the end of October 2006, Guotai had total assets of RMB 265 million.

Jianyin Investment is a large state-owned company with a registered capital of RMB 20.69 billion and is wholly controlled by Central Huijin Investment Co. Ltd. The company focuses on investing in securities firms, such as China Jianyin Investment Securities, Hongyuan Securities, China Securities, UBS Securities and China International Capital Corp. (CICC).

Backed by the bullish fund market in 2006, Jianyin Investment is starting to increase its investments in the fund management industry.