SHANGHAI (Reuters) – Schroders has obtained Chinese regulatory approval to establish a wholly-owned mutual fund unit in China, as Beijing accelerates opening up its giant financial sector to foreigners.
China abruptly dismantled its strict, three-year zero-COVID policy in early December, and the federal government has apparently stepped up efforts to woo foreign corporations and investors to help an economic recovery.
Last month, U.S. asset manager Neuberger Berman celebrated the opening of its China retail fund business, while Fidelity International was granted a mutual fund licence within the country. Authorities have also recently allowed Canada’s Manulife Financial Corp to take full control of its Chinese mutual fund enterprise.
The China Securities Regulatory Commission (CSRC) gave the green light to Schroders late on Friday, allowing the British asset manager to expand its footprint in China, where Schroders already owns a mutual fund enterprise, in addition to a wealth management enterprise.
Organising a wholly-owned retail fund business in China is testament to Schroder’s long-term commitment to the country – a key component of the group’s global strategy, the corporate said in an announcement.
Obtaining the go-ahead from the CSRC is an important step that strengthens Schroder’s confidence to expand business and investment in China, Global Head of Distribution Lieven Debruyne said within the statement.
China scrapped foreign ownership caps in its $3.7 trillion mutual fund industry in 2019, and BlackRock grow to be the primary foreign asset manager to open a fully-owned retail fund business within the country.
Other players looking for such a licence include VanEck and AllianceBernstein.
(This story has been refiled to correct Chinese to China in paragraph 4)
(Reporting by Samuel Shen and Brenda Goh; Editing by Mark Potter)
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