Macquarie Group has continued its push into China, setting up a trust company joint venture allowing it to operate asset management and corporate banking services on the Chinese mainland.
The move is significant in that it will enable Macquarie to offer RMB-denominated products in addition to arranging debt and equity financing in China.
The joint venture, entitled Sino-Australian International Trust Company, is being made in collaboration with Beijing Sanjili Energy Company and Beijing Rongda Investment. Both partners are controlled by a number of Chinese state-owned companies, including the State Development and Investment Company.
The establishment of the trust company comes a week after Macquarie unveiled its plans to collaborate with China Everbright in raising two greater China-focused infrastructure funds, with a combined fundraising target of $1.5 billion. Macquarie and Everbright are set to commit a combined $100 million to the funds, the first of which will be a dollar-denominated fund, the second in RMB. The infrastructure fund was Macquarie’s first foray into the Chinese market.
Macquarie’s latest collaboration highlights the difficulties Western investors face in setting up shop in China, where it can often be virtually impossible to get a footing in the country without partnering with domestic institutions.
Sino-Australian International Trust Company will be headquartered in Shanghai, and will have an initial capital base of RMB 300 million (€30.6 million; $43.9 million).
Macquarie will own 19.99 percent of the new company, the maximum it is permitted under current regulations. Sanjili and Rongda will hold 60 percent and 20.1 percent stakes respectively in the venture.