Fund management biz beckons banks

The stock market rally, which began early this year, has been propelling banks and other financial institutions to jump onto fund management bandwagon.

More than 10 newly established fund management companies have sought approval from the China Securities Regulatory Commission to market unit trusts to investors.

These fund management companies are different from the existing firms on account of their parentage. Most of the firms are owned, at least partly, by domestic or foreign banks. Similarly most of the fund management companies that are in operation now can trace their roots to stock brokerage or other investment businesses.