ING, the Dutch-headquartered financial services firm, has agreed to sell its 33.3 per cent stake in a Chinese joint venture business to its Asian partners. 

ING is letting go of its interest in China Merchants Fund, an investment management joint venture it owns with China Merchants Bank and China Merchants Securities. The deal is part of ING's previously announced plan to sell off its insurance and investent management businesses in Asia. 

Under the terms of deal, ING will be be paid €98 million (US$127 million) in total cash consideration. The Dutch firm expects the transaction to deliver as much as €64 million in net gain.

China Merchants Fund was created in 2002. Currently, it has around a 3 per cent share of the Chinese mutual funds market.

The sale does not affect ING's other businesses in Asia. It is expected to close in the second quarter of 2013 pending regulatory approvals.