Manulife gets green light to take full control of China funds unit as Beijing tears down foreign ownership barriers

Name: SCMP
Telephone: +852-2680-8888

Analysts said Beijing’s approval of the deal reflects the country’s increased willingness to open up its financial markets to foreign players

A string of global asset managers including JPMorgan and BlackRock have applied to set up fully-owned mutual fund units in China after regulators scrapped foreign ownership restrictions in April 2020

Reading Time:3 minutes

Why you can trust SCMP

The deal, upon completion, will convert the joint venture company that was established in 2010 into a wholly-owned unit of Manulife Investment Management. Photo: Shutterstock

Enoch Yiu

Published: 6:44pm, 21 Nov 2022Updated: 11:10am, 19 Nov 2024

Beijing has given Manulife Investment Management the all-clear to take complete control of its mainland Chinese joint venture, in a move analysts said reflects the country’s increased willingness to open up its financial markets to foreign players.

The China Securities Regulatory Commission (CSRC) gave its approval for the Canadian asset manager to spend 1.7 billion yuan (US$237.22 million) to acquire the 51 per cent of the shares in Manulife TEDA Fund Management owned by its joint venture partner Tianjin TEDA International Holding.

Manulife claims it is the first foreign asset manager to receive government approval to convert its joint venture into a fully-owned fund management company.

The deal, upon completion, will convert the joint venture company that was established in 2010 into a wholly-owned unit of Manulife Investment Management, according to separate statements from the company and the regulator on Monday. The company is the asset management arm of Toronto-based insurer Manulife Financial Corporation, which is the largest pension provider in Hong Kong.

It is one of a string of global asset managers including JPMorgan, Fidelity, BlackRock and Neuberger Berman that have applied to set up fully-owned mutual fund units in China after regulators scrapped foreign ownership restrictions in the industry in April 2020.

“This is an important milestone for us, as it means we will have direct access to China’s large and fast-growing retail fund market,” said Michael Dommermuth, head of wealth and asset management in Asia at Manulife Investment Management.