© Reuters. FILE PHOTO: The logo of investment management company Schroders is seen at a branch in Zurich, Switzerland, November 5, 2018. REUTERS/Arnd Wiegmann
SHANGHAI (Reuters) – schroders (LON:) has won Chinese regulatory approval to set up a wholly-owned mutual fund unit in China as Beijing speeds up the opening of its gigantic financial sector to foreigners.
China abruptly dismantled its strict three-year zero-COVID policy in early December, and the government has apparently stepped up efforts to attract foreign companies and investors to aid an economic recovery.
Last month, US asset manager Neuberger Berman celebrated the opening of its retail fund business in China, while Fidelity International obtained a mutual fund license in the country. The authorities also recently allowed Canada’s Manulife Financial (NYSE:) Corp to take full control of its Chinese mutual fund company.
The China Securities Regulatory Commission (CSRC) gave Schroders the green light on Friday night, allowing the British asset manager to expand its presence in China, where Schroders already owns a fund company. mutuals, as well as a wealth management company.
Establishing 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 company said in a statement.
Getting the nod from the CSRC is a crucial step that strengthens Schroder’s confidence to expand business and investment in China, global head of distribution Lieven Debruyne said in the statement.
China removed foreign ownership limits on its $3.7 trillion mutual fund industry in 2019, and BlackRock (NYSE:) became the first foreign asset manager to open a wholly owned retail fund business in the country .
Other players seeking such a license include VanEck and AllianceBernstein (NYSE:).
(This story has been resubmitted to correct Chinese to China in paragraph four)
