Schroder Investment Management (China) announced on Friday that it has received approval from the China Securities Regulatory Commission (CSRC) to establish a wholly foreign-owned public fund management company (FMC) in mainland China.
David Guo, chief executive for China at Schroders, said: “We are delighted that Schroders has received regulatory approval to establish a wholly foreign-owned public fund management company in mainland China. We are committed to preparing for the establishment of this new company. As the Chinese government continues to open up its financial market, we believe the China onshore retail fund and pension fund markets are ready for differentiated investment solutions from global investment managers.”
The approval further underscores Schroders’ commitment to serving onshore investors and marks another milestone in the group’s business expansion in mainland China, said the British asset manager.
Apart from the FMC, Schroders also obtained permission to establish a wealth management joint venture with BOCOM in 2021. The asset manager opened its first representative office in Shanghai in 1994 and has been providing Chinese investors with access to offshore investments through the Qualified Domestic Institutional Investor and Mutual Recognition of Funds schemes.
The Chinese government has been opening up its asset and wealth management industries to foreign players through different entry points. BlackRock was the first global manager that established both a wholly owned FMC and a majority-controlled WMS.
In one of the latest moves, the CSRC granted Manulife Investment Management approval to take full control over its fund management joint venture with TEDA Investment Holding in November last year.
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