JV of Minsheng Banking, Royal Bank of Canada approved

China Minsheng Banking Corp<600016>, the country's seventh largest lender by market value, has won the approval from China Banking Regulatory Commission (CBRC) to jointly establish a fund management enterprise with Royal Bank of Canada and the financing unit under China Three Gorges Project Corporation.

According to earlier statement, the three companies would set up a fund management joint venture with registered capital of RMB 200 million. The Chinese lender will hold 60% stake in the venture, Royal Bank of China will have 30% stake and the Three Gorges' financing arm will own the remaining 10%.

China Mingsheng Banking will sell its 134 million shares of Haitong Securities<600837> under the current regulations, said the lender in a statement to Shanghai Stock Exchange. Shares of Haitong went down 2.78% to close at RMB 53.69 yesterday. The bank may generate RMB 7 billion from the share sale.

Shares of Minsheng Banking closed at RMB 14.98, up 1.08% yesterday.