Macquarie Group forms China trust joint venture

Macquarie Group Ltd, Australia's biggest investment bank has set up a trust company joint venture in China with an initial capital of 300 million yuan ($44 million).

Sino-Australian International Trust Co, as the Shanghai-based joint venture is called, will enable the global provider of diversified financial services to offer yuan-dominated products, arrange domestic debt and equity financing, Macquarie said in a statement yesterday.

Macquarie owns 19.99 percent of the venture, the maximum allowed under current regulations. Beijing Sanjili Energy Co Ltd (Sanjili), a State-owned power generation company, owns 60 percent of the joint venture while Beijing Rongda Investment Ltd owns 20.01 percent. Several State-owned firms including the State Development and Investment Corp control Sanjili and Rongda.