The China Securities Regulatory Commission has approved the launch of a fund management company by China Minsheng Bank Corp and Royal Bank of Canada, China Minsheng said on Thursday.

The Shanghai-based joint venture will have capital of 200,000,000 yuan ($27.5 million).

Minsheng, China's first private bank, will hold a 60 percent stake in the venture, Royal Bank, Canada's largest bank, 30 percent and a local financial company the remaining 10 percent, Minsheng said in a statement.