Power Corporation of Canada and its affiliate Mackenzie Financial have both raised their stakes in China Asset Management (China AMC), a unit of Chinese conglomerate CITIC Group. 

China AMC served over 40 million retail investors and 400 institutional mandates and managed RMB1.1 trillion in assets as at 30 June 2016.

Mackenzie Financial, a subsidiary of IGM Financial, agreed to acquire an additional 3.9% interest in China AMC in a deal worth RMB936m ($135m).

The move comes shortly after Mackenzie Investments’ purchase of a 10% interest in China AMC, thereby boosting IGM’s interest in the Chinese asset manager to 13.9% for a combined RMB3.34bn ($481.6m).

Power Corporation, the indirect parent of IGM, agreed to acquire an additional 3.9% interest in the Chinese asset manager for RMB936m ($135m).

Power Corporation previously acquired a 10% interest in China AMC in 2011, which takes its total interest in the asset manager to 13.9%.

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Both the deals are anticipated to be completed in the first half of 2017, subject to regulatory approvals.

Power Corporation vice-president Olivier Desmarais said: "This is an important addition to our portfolio in China, investing in the fast-growing asset management sector and in one of the best companies in its class.

"Through this transaction, we are building on Power Corporation's long-standing presence in China and deepening our 30-year relationship with the CITIC Group of companies."