27 August 2009
Macquarie Group today announced the establishment of a trust company joint venture in mainland China, enabling the global provider of diversified financial services to offer RMB products and arrange domestic debt and equity financing.
Macquarie's partners in the venture are Beijing Sanjili Energy Company Limited (Sanjili) and Beijing Rongda Investment Limited (Rongda), which are both controlled by several state owned companies including State Development and Investment Company (SDIC), one of China's largest investment holding companies.
The joint venture will be called Sino-Australian International Trust Company (SATC) and headquartered in Shanghai, China's designated international financial centre. SATC has received all government and regulatory approvals. The company will initially focus on helping companies and local government bodies raise financing, while providing RMB investment products to high net worth and institutional investors. The joint venture will have an initial capital base of RMB300 million.
"We are delighted to have a partner like Macquarie, one of the world's leading financial institutions with a track record of providing high quality and innovative investment services to its clients," said Sanjili Chairman Yu Jian Ping. "We see a fantastic opportunity given China's significant and swelling local currency savings pool."
China's household savings reached an estimated RMB20 trillion ($US3 trillion) in 2008, or 72.5 per cent of China's 2008 gross domestic product (GDP).1 This grew in excess of 20% between 2007 and 2008.
"This joint venture will allow us to extend our client service capability as we build a domestic distribution network and to arrange financing for international clients operating in China and locally based corporates," said Andrew Low, Head of Macquarie Capital Asia. "Our partners have the relevant domestic experience, influence and leadership, and we look forward to a long and successful partnership with them."
Macquarie owns 19.99 per cent of the joint venture company, the maximum allowed under current regulations. Sanjili owns 60 per cent and Ronda owns 20.01 per cent. SATC will be jointly managed. Its office is located in Lu Jia Zui area of Pudong, Shanghai's financial district.
SATC is classified as a Non-Banking Financial Company regulated by China's banking regulator China Banking Regulatory Commission.
1 National Bureau of Statistics, 2008
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services.
Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world.
Macquarie Group Limited is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker. Macquarie also owns a bank in the UK, Macquarie Bank International, which is regulated by the FSA. Macquarie's activities are also subject to scrutiny by other regulatory agencies around the world.
Macquarie's approach to risk management is long-standing. Strong risk management practices are embedded in business unit management with central oversight of credit, market, funding, compliance and operational risk. These, together with committed, quality staff are key drivers of Macquarie's success.
Founded in 1969, Macquarie operates in more than 70 office locations in 26 countries. Macquarie employed approximately 12,700 people and had assets under management of $A243 billion at 31 March 2009.
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