Global fund managers win China approval to launch onshore funds as country opens up market
Value Partners says it is first Hong Kong-based asset manager to receive such a licence
Hong Kong-based Value Partners, US-based Invesco and Neuberger Berman have received licences in China to launch onshore investment funds that allows them to tap the 6 trillion yuan (US$903 billion) asset management market as the country eases access to its financial services sector.
The three firms’ wholly foreign owned enterprises in Shanghai received the Private Fund Manager (PFM) licence separately, said Asset Management Association of China, a self-regulatory body that oversees private funds in the country.
They join Fidelity International, UBS Asset Management, London-listed Man Group, and Fullerton Fund Management, owned by Singapore’s Temasek, which received their permits this year.
The PFM licence allows holders to launch private securities investment funds in China, which would invest in the country’s domestic securities market, and accept investment from qualified Chinese investors into such funds. Under the terms of the licence, asset managers are required to launch a product within six months of registration.
“We are excited to embark on this new phase of growth as we continue to strengthen our position as an investment solutions provider to investors in China and a China investments expert to investors elsewhere in the world,” said Dr Au King Lun, chief executive officer of Value Partners, in a statement on Friday.
Value Partners said it was the first Hong Kong headquartered asset manager to receive such a licence.
