Under the proposed venture, UOB and Allianz will each hold a 40 percent stake with GIC Special Investments, GIC's private equity investment, taking the remaining 20 percent.

"We believe that we have formed an excellent partnerhsip that positions ourselves to meet the challenge of the new business in China," UOB group's deputy chairman and president Wee Ee Cheong said in the statement.

"With the support of all three institutions, we are confident of success in growing our asset management business in China," he said.

In September, UOB and Allianz agreed on an equal partnership joint venture to invest in China but have now expanded it to include GIC, the state agency responsible for managing Singapore's foreign reserves in global investments.

The alliance is now searching for a Chinese partner to form the company, as required by financial regulations in China.

"We are currently looking at a number of potential partners in China and are planning to combine our know-how with local expertise and distribution," said Joachim Faber, a member of the board of management at Allianz.

(China Daily 12/21/2000)