CITIC Securities, the Chinese brokerage giant, is getting back its controlling interest in a major local fund management firm in the wake of a change in regulatory restrictions.

In a filing with the Shanghai Stock Exchange, CITIC said that it plans to invest RMB2 billion ($326 million) to acquire a further 10 per cent stake in China Asset Management. The offer will effectively give the firm a 59 per cent holding in the asset manager. The stake is currently owned by state-controlled Wuxi Guolian Development Group.

China AMC presents a strong growth prospect for CITIC, especially after delivering some RMB49.4 billion in profits between 2001 and 2011. According to Wind Information, a local provider of economic data and financial information, China AMC accounted for some 11.69 per cent of the total profits of the entire asset management industry in 2011.

CITIC Securities has been looking for ways to augment its earnings to offset weak performances at its prime brokerage and investment banking operations.

CITIC previously owned the 10 per cent stake but was forced to sell in 2011 after the China Securities Regulatory Commission ordered that investors dealing with securities businesses can hold only a maximum of 50 per cent in another company. This rule was recently waived by the CSRC to give investors wider options on where to put their money.