FORTIS NV has applied to set up a Chinese fund management joint venture with Haitong Securities Co. Ltd., the head of the Belgian-Dutch financial group’s China office said Tuesday.

　　The proposed venture would have a registered capital of 100 million yuan (US$12 million) and Fortis would own 33 percent, the maximum allowed for a foreign partner under Chinese regulations, said Yan Xiaoqing, Fortis’ chief representative in Shanghai.

　　Haitong Securities, China’s third largest brokerage by registered capital, would hold the remaining 67 percent, he said.

　　Yan said Fortis had been talking to Haitong about a tie-up for two years and would raise its investment in the venture when regulations allowed, which should be in about three years when the 33 percent ownership limit in a domestic fund firm or venture will rise to 49 percent. “We sent our application to the CSRC in mid-August and it was formally accepted September 6,” said Yan.

　　Haitong has plans to become China’s biggest brokerage by inviting domestic investors to help raise its registered capital by 3 billion yuan from 4.006 billion yuan in September or October, officials said in early August.

　　The Shanghai-based firm is China’s most profitable brokerage and aims for gross profit of 1.46 billion yuan this year, State media said last month.

　　Fortis reported a first-half operational net profit of 1.48 billion euros (US$1.45 billion).

　　Other global fund managers waiting for the green light from China include Allianz AG, Societe Generale and ING Groep NV.

　　Joint ventures are the only way foreign fund managers can tap China’s massive market, where there are about one trillion dollars in personal bank savings and US$500 billion in stock exchanges. (SD-Agencies)