Qatar Sovereign Fund to Buy 10% Stake in China Asset Manager

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After the deal, QIA will become ChinaAMC’s third largest shareholder.

Qatar’s sovereign wealth fund has agreed to buy a 10% stake in China’s second-largest mutual fund company, China Asset Management Co. Ltd., Reuters reported.

The Qatar Investment Authority (QIA) will buy the stake in ChinaAMC from Tianjin Haipeng Technology Consulting Co. Ltd., which is owned by Chinese investment firm Primavera Capital Group, and will become the mutual fund’s third largest shareholder.

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Qatar Investment Authority (QIA) will acquire a 10% stake in China Asset Management Co. Ltd. from Tianjin Haipeng Technologies, owned by Primavera Capital.
Primavera acquired the stake in 2011 for 1.7 billion yuan and proposed to sell it in 2022 for $490 million, but the valuation has fluctuated.
ChinaAMC had 1.89 trillion yuan in assets under management by the end of 2023, with IGM Financial holding a 27.8% stake.

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Who’s Who

China Asset Management Co. Ltd.: China Asset Management Co. Ltd. (ChinaAMC) is China’s second-largest mutual fund company, founded in 1998. By the end of 2023, it managed 1.89 trillion yuan in assets, serving over 210 million individual and 250,000 institutional investors. The company has notable shareholders including Citic Securities holding 62.2% and Mackenzie Financial Corp. with 27.8%.

Tianjin Haipeng Technology Consulting Co. Ltd.: Tianjin Haipeng Technology Consulting Co. Ltd. is owned by Chinese investment firm Primavera Capital Group. It currently holds a 10% stake in China Asset Management Co. Ltd. (ChinaAMC), which it acquired in 2011 for 1.7 billion yuan ($235 million). The company is in the process of selling this stake to the Qatar Investment Authority (QIA).

Citic Securities Co. Ltd.: Citic Securities Co. Ltd. is the largest shareholder of China Asset Management Co. Ltd., holding a 62.2% stake. In June 2022, Primavera Capital proposed selling a 10% stake in ChinaAMC to Citic Securities for $490 million, but Citic, having a right of first refusal, decided not to increase its holding.

IGM Financial Inc.: IGM Financial Inc. is a Canadian asset management firm. Its unit, Mackenzie Financial Corp., holds a 27.8% stake in ChinaAMC. In January 2023, Mackenzie purchased half of this stake from Power of Corp of Canada for $1.15 billion, which valued ChinaAMC at 41.5 billion yuan.

Mackenzie Financial Corp.: Mackenzie Financial Corp., a unit of Canadian asset management firm IGM Financial Inc., holds a 27.8% stake in China Asset Management Co. Ltd. In January 2023, Mackenzie Financial acquired half of this stake from Power Corp of Canada for $1.15 billion. This transaction valued ChinaAMC at 41.5 billion yuan.

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What Happened When

2011：: Primavera Capital acquired the 10% stake in China Asset Management Co. Ltd. (ChinaAMC) for 1.7 billion yuan.

June 2022：: Primavera Capital proposed to sell the 10% stake in ChinaAMC to Citic Securities Co. Ltd. for $490 million.

January 2023：: Mackenzie Financial Corp. acquired half of its 27.8% stake in ChinaAMC from Power of Corp of Canada for $1.15 billion.

2023：: Primavera Capital's 10% stake in ChinaAMC was assessed at 1.55 billion yuan, about 10% lower than its cost, in an investor dispute involving Primavera Capital and Ant Group.

By the end of 2023：: ChinaAMC had 1.89 trillion yuan of total assets under management.

May 23, 2024：: The China Securities Regulatory Commission decided to accept the application from ChinaAMC for a transfer of a stake bigger than 5%, as part of the formal approval process.

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