UPDATE 1-AMP Capital seeks JV partners in China

* AMP Cap looks to tap mutual and pension fund mkt in China

* AMP Cap open to JV with strategic partner China Life

* China Life is investment adviser to AMP in China (Adds comments, details)

By Parvathy Ullatil

HONG KONG, Nov 13 (Reuters) - AMP Capital Investors, the investment management arm of Australian insurer AMP Ltd (AMP.AX), is open to forming a joint venture with China Life (2628.HK) to tap China's growing market for mutual funds and pension funds, a senior executive said on Friday.

AMP Capital's parent company AMP has been in the spotlight recently after its bid to buy AXA Asia Pacific AXA.AX for $10.3 billion was rejected by AXA Asia Pacific's independent directors. [ID:nL9367432]

AMP Capital Investors, which has close to $90 billion in assets under management, and China Life have a strategic partnership agreement at present where the Chinese insurance giant's asset management arm acts as an investment adviser. "The mistake many foreign firms make is to treat China like McDonalds where you order a double cheese burger and get the same thing whether you are in Shanghai or Sydney," said Beng Neoh, managing director in charge of AMP Capital in North Asia.

The firm set up its China operation in 1998 and has $300 million invested in the mainland stock market under the qualified foreign institutional investors (QFII) programme, which allows overseas institutions to buy and sell yuan-denominated A shares.

AMP Capital has also invested in infrastructure projects in China through private equity deals and manages $5 billion in Japan as a sub-adviser, said Neoh.

"We are not looking for a one night stand in China, so we will be very careful in choosing a partner...We would be open to tying up with China Life. The two companies have a lot in common."

China's national pension fund said in October it expects to grow to 1 trillion yuan ($146.5 billion) in a year, up from $80 billion at the end of last year.

Most projections of the potential size of China's still nascent pension market, where pension reforms only date back to the 1990s, includes just its 400 million strong urban population, said Neoh.

AMP, which is Australia's biggest superannuation provider, hopes to capitalise on its expertise in its home market where employers are required to make compulsory contributions to superannuation on behalf of most of their employees.

"We don't pretend to know how the Chinese should be doing things, it's about knowing who we are and taking that and working with a local partner," said Beijing-based Neoh.

Entering the fast-growing Chinese life insurance market is more a long term goal for AMP, said Neoh, as the market looks crowded at present with a handful of big players and numerous smaller competitors.