BNP Paribas, the largest bank in the Eurozone in market capitalization and net income, yesterday launched a new securities joint venture in Shanghai, the financial hub of China.

The new firm, Changjiang BNP Paribas Peregrine Securities Co, will be 33 per cent owned by BNP Paribas with the remaining majority stake by the Changjiang Securities, one of China's middle-sized underwriters.

The establishment of the joint venture marks one of the French bank's latest moves to boost its growth in China. It participates in sectors including securities, funds management and banking.

"The new joint venture will provide a wide range of financial services covering offerings and underwriting of securities in the domestic market, financial advisory services, mergers and acquisitions,'' said Michel Pebereau, group chairman of BNP Paribas, at the news conference.

The company entered into a framework agreement with Changjiang Securities to establish a securities joint venture in China in March 2002.

Moreover, BNP Paribas is scheduled to open another joint venture before the end of the year. The new venture will centre on asset management, and will be jointly held with Shanghai-based Shenyin & Wanguo -- one of China's leading brokerages. The two sides filed documents to the China Securities Regulatory Commission in October for a green light.

Also released yesterday is the French bank's buy-out of all shares in a 50-50 banking joint venture launched in 1992 in Shanghai with the Industrial and Commercial Bank of China. The capital of the now wholly owned operation is raised to 555 million yuan (US$67.05 million).

Pebereau declined to say how much the bank had paid its partner for its stake, but added that the capital of the wholly owned bank will reach 600 million yuan (US$72.46 million) in the near future.

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