The newspaper, citing CCB sources, said the deal could be concluded in the next four weeks, giving Principal Financial a chance to win a share of China's savings pool, including US$2.5 trillion worth of deposits held by China¨s banks.
The third shareholder in the planned joint venture was believed to be China Huadian Corp., one of the country's biggest State-owned power companies, the paper said.
Foreign financial services companies which are seeking to operate in China are required to take minority stakes, of up to 49 percent, in a local joint venture.
CCB declined to comment on the possible tie-up, but said it was hoping to have a fund management joint venture approved by September, the paper said.
The paper quoted its CCB sources as saying the company was "very close" to forming a joint venture with Principal Financial, but warned the deal had not yet been signed.
(Source: Shenzhen Daily/Agencies)