Fidelity plans China fixed income product launch after targeting market debut with equity fund float in current quarter
- Beijing granted Fidelity permission to tap China’s US$3.7 trillion mutual-fund market through its wholly owned entity in December
- China’s mutual-fund market has grown at a compound annual growth rate of about 20 per cent over the past five years, according to Fitch Ratings
Fidelity International, which is currently working on its first equity-focused mutual fund product launch in mainland China, plans to follow it up with fixed-income products in early autumn, riding on China’s economic growth tailwinds and Beijing’s market friendly policies.
The international arm of the Boston-headquartered money manager is hoping to make its debut with the equity focused product in a couple of months and for this it is currently raising money from Chinese retail investors. It received permission from Beijing to tap the nation’s US$3.7 trillion mutual-fund market through its wholly owned entity in December.
“It’s a good time. We’re looking at a market that is going to be very open, and where private capital can work with fiscal policy and the authorities, to create some more dynamism,” Andrew McCaffery, Fidelity’s Global CIO, Asset Management, told the South China Morning Post in a recent interview.
“If you looked at 12 to 18 months ago, there were some very significant headwinds from a macro economic perspective, and those now have actually turned around.”
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