Fidelity International has received approval from the authorities to launch its first fund to retail investors in mainland China.
The fund is an equity investment fund with a six-month lock-up period, according to the company.
Investors must hold the product for a minimum of half a year and cannot redeem or sell the fund during the lock-up period.
The approval for sale of the first fund came only a week after the firm announced that FIL Fund Management (China) Company commenced business.
Currently, Fidelity has three offices in mainland China: in Shanghai, Dalian and Beijing, with over 1,900 employees.
Speaking at the opening ceremony of the fund management company, Helen Huang, managing director, said: “Relying on Fidelity’s deep experience in investment, pension and ESG, we are committed to combining a global vision with our local capabilities to provide a wide range of investment and pension solutions to Chinese investors to help them to achieve long-term financial goals.”
Neuberger Berman
The Fidelity fund comes just as US asset manager Neuberger Berman announced that its first retail fund in China has been approved for sale.
The China Guardian One-year Holding Bond Fund is a fixed income plus fund, which invests in domestic fixed income securities with a portion of the fund in equities.
“The investment strategy is based on Neuberger Berman’s experience in asset allocation in the global market,” said Patrick Liu, chief executive of Neuberger Berman Fund Management (China).
“Through the strategic allocation made by the investment team’s risk parity model and our active management ability, we aim to build a fund with a lower risk rating for investors.”
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