Merrill Lynch Investment Managers (MLIM) has become the latest Western firm to gain access to the potentially lucrative Chinese market after being granted a licence by the Chinese Security Regulatory Commission to set up a joint venture in the country with Bank of China International.

MLIM will own a 16.5% stake in the joint venture, to be called BOC International Investment Management, and will offer management expertise to the new company. This will cover all aspects of running a fund management business from investment process to sales and marketing. The new company will be based in Shanghai.