AMP Capital will establish a funds management company in China with China Life Asset Management Co., Australian and New Zealand independent wealth management company AMP announced on September 2.

AMP Capital, a subsidiary of AMP, will hold a 15-percent stake in China Life AMP Asset Management Co., with the rest to be held by China Life Asset Management Co., a subsidiary of China's largest insurer China Life Insurance Co. and one of the largest institutional investors in China.

The joint venture has received approval from the China Insurance Regulatory Commission, and is subject to approval by the China Securities Regulatory Commission.

It will be China Life's first joint venture on the Chinese mainland with a foreign partner in funds management.

Recent regulatory changes in China allow insurance companies to establish funds management companies, offering public mutual funds to retail and institutional investors.