Bear and T.Rowe vie for China fund firm stake

(Reuters) - Wall Street investment bank Bear Stearns (BSC.N: Quote, Profile, Research) is in talks to buy around 10 percent of China's biggest fund house, looking to tap the country's red-hot mutual fund market, two sources with knowledge of the situation told Reuters on Thursday.

China Asset Management Co, wholly-owned by China's top broker CITIC Securities (600030.SS: Quote, Profile, Research), has been talking to several potential foreign investors including Bear Stearns and U.S. fund manager T. Rowe Price Group ( TROW.O: Quote, Profile, Research), said the sources, who have been briefed on the talks.

The talks between China Asset Management and Bear Stearns follow an announcement in October that the U.S. bank, battered by a mortgage market slump, and Beijing-based CITIC Securities would take investment stakes in each other and form a broad strategic alliance.

However, that announcement didn't include the plan to allow Bear Stearns to invest in CITIC Securities' fund arm.

T. Rowe Price approached China Asset Management earlier than Bear Stearns, but the partnership with CITIC Securities would help Bear Stearns secure its tie-up with China Asset Management, though no agreement has been reached, said the two sources.

 

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