The Industrial and Commercial Bank of China is to set a fund management company with the Standard Bank of South Africa to develop its overseas assets management business according to Jiang Jianqing, a board director of ICBC. Mr Jianqing said that the joint fund management company will be formed after ICBC completes its acquisition of a 20 per cent stake in Standard Bank for $5.5 billion and that the new fund management company will raise funds through private placements and target mainly energy and resources projects in Africa. Mr Jianqing said that ICBC's return on equity will rise by 0.3 or 0.4 percentage points after the transaction. ICBC is currently applying for a new QDII quota for the planned fund management company, as its existing quota has already been filled.