Prumerica Financial, the brand name under which the Prudential Insurance Company will conduct its business in China, signed a letter of intent to establish a fund management firm with Shanghai-based Everbright Securities, one of the top 10 securities companies in the country.

"As China continues its modernization, the provision of financial services will become of increasing importance, and our hope is, in association with our partners at Everbright, we can contribute to that development," said Douglas Fergusson, president of Prumerica Financial Asia.

In the initial stages, both sides will focus on an exchange of technical knowledge and training programmes in fund management, according to Huang Ye, assistant general manager of Everbright's fund business department.

However, details such as investment proportion are not included in the agreement.

"We are still waiting for China Securities Regulatory Commission (CSRC) to issue the joint venture fund manager provision," said Everbright Securities' CEO Xie Zhichun.

Prumerica Financial also announced it intends to apply for permission to establish a representative office in China for its international investment business.

(China Daily November 16, 2001)