China Fund Manager Merger Looms as Huaan and HFT Eye Combination

China fund manager merger activity is set to deepen as Huaan Fund Management and smaller peer HFT Investment Management prepare to combine under rules that bar one company from controlling stakes in two mutual fund managers, according to a local media report.

Both firms are controlled by Guotai Haitong Securities, and the final merger plan is expected later this month or in early April.

The proposed China fund manager merger comes as regulators push wider consolidation across the financial sector to build globally competitive banks and asset managers.

Huaan, the country’s 16th-largest mutual fund company, manages more than RMB800bn(USD115.9bn), while HFT Investment, partly owned by BNP Paribas, oversees about RMB250bn.