State Street Global Advisors launched SSGA Fund Management Co., the firm's joint venture in Beijing with Zhongrong International Trust, the firm announced Thursday.
Boston-based SSgA holds a 49% stake in the joint venture, while Shenzhen-based Zhongrong International Trust, one of China's largest money managers with roughly 300 billion yuan ($48.8 billion) in assets under management, holds 51%.
SSgA will make an initial financial contribution of roughly $50 million to the joint venture.
In a telephone interview, James MacNevin, SSgA's Sydney-based senior managing director and chief administrative officer for the Asia-Pacific region, said the joint venture has tapped market veteran Li Xuesong as CEO, to put together a first-rate team capable of bringing out a “full range of investment products.”
Mr. Li comes to SSGA Fund Management from Bosera Fund Management Co., where he served as deputy general manager.
A Bosera spokesman couldn't immediately be reached for comment.
Meanwhile, Gui Songlei, a Zhongrong International Trust veteran, has been appointed chairman of the joint venture board.
Mr. MacNevin said the joint venture is likely to initially have more of a retail focus, but will eventually look to offer investment products to a broad range of clients, including high-net-worth and institutional investors.
He said SSgA, which serves big institutional clients in China from offshore, is looking to gain insights about the local market as it works to contribute to the joint venture's success.