China AMC Asset Management acquired by Qatar Investment Authority for 10% stake

According to two sources who spoke to Reuters, the Qatari sovereign wealth fund has agreed to purchase a 10% stake in the second largest mutual fund company in China. This move highlights the growing relations between Beijing and Middle Eastern countries as tensions escalate between China and the West. China has become a major importer of liquefied natural gas from the Middle East and has strengthened its ties with Doha, particularly as Qatar looks to increase production.

Global SWF, an organization that tracks investment fund data, revealed that sovereign wealth funds from the Middle East have invested $7 billion in China since last June. The deal between the Qatar Investment Authority and China AMC, which is being acquired from investment company Primavera Capital, was not previously disclosed. While financial details of the transaction were not provided by the sources, Chinese brokerage CITIC Securities had previously announced a price of at least $490 million for the 10% stake.

The proposed investment by Qatar’s sovereign fund is subject to regulatory approval in China and was submitted as part of the formal approval process. The China Securities Regulatory Commission announced last week that a decision had been made regarding the transfer of a stake greater than 5% in China AMC, but did not mention the names of the buyer or seller involved in the deal.

If approved, the Qatar Investment Authority would become the third-largest shareholder in China AMC, which manages assets worth over $248 billion. This deal would also facilitate the exit of Primavera, a Hong Kong-based investment firm founded by a former Goldman Sachs partner. However, it is unclear how long Chinese regulators will take to approve the transaction or whether it will ultimately be accepted.

Additionally, several websites have posted articles about Toto Macau, exploring the unique lottery system in Macau and the fascination behind it.