The China Securities Regulatory Commission has granted onshore investment advisory services licences to five asset managers.
The firms are China AMC, E Fund Asset Management, Harvest Fund Management, China Southern Fund and Zhong Ou Asset Management.
“The services now permitted include tailoring investment options for clients based on their financial status and financial management needs,” according to a statement from China AMC.
“Investment managers could help customers obtain long-term benefits through continuous optimisation of the portfolio.”
Next step
Li Yimei, general manager of China AMC, said: “From the perspective of the industry’s development, money market funds have guided the transition from savings to cash management. The next step would be the transition from cash management to investment management,”
“In the process, investment consultants will take the responsibility.
“The investment advisory service means that mutual funds will shift from product sales-orientation to service-orientation and focus on the interests of customers.”
The firm also said it has around 100 investment advisers and an investor with only CNY500 (£56, $70, €64) can use the service.
App
A spokesman for China Wealth Management, the wholly-owned subsidiary of China AMC, said it developed the “Charlie Intelligent Investment App” in January last year, which was a preliminary move in preparation for the investment advisory service qualification.
The updated app offers investors 10 types of portfolio strategies and 10 standardised investment advisory portfolios, most of which are provided by third-party asset managers.
The spokesman added that “the service is for both retail and professional investors as professional investors may have liquidity concerns”.
In 2016, China allowed foreign asset managers with PFM wholly foreign-owned enterprise (WFOE) structures to provide investment advisory services onshore.
Neuberger Berman and Fullerton have so far obtained licences to provide these services, our sister publication Fund Selector Asia reported earlier.
For more insight on asset and wealth management in Asia, please click on www.fundselectorasia.com
