Dutch asset manager Robeco has gained a licence to operate in mainland China as a wholly foreign-owned entity (WFOE).
Based in Shanghai, Robeco's WFOE incorporates a newly established research team, which will provide investment research on mainland-listed shares, as well as a sales team.
The mainland-based employees will report to Robeco's Hong Kong office, which manages Asia Pacific equities, Asia ex-Japan equities, Chinese equities and Indian equities.
In a statement, the company says the approval is "among the first batch of WFOE licences issued to international asset management companies in China". The approval builds on the company's representative office in Shanghai, set up in 2007.
Earlier this year, JP Morgan Asset Management received what it said was the first WFOE to include asset management in the name. Last year, Aberdeen Asset Management gained a WFOE to operate as a securities firm.
WFOEs are considered a promising means of doing business in China because they give foreign firms full control of their businesses. In the past, the only way foreign asset managers could operate on the mainland was as minority partners in joint ventures.
However, a WFOE by itself is not typically enough for a company to conduct a full range of asset management activities on the mainland. Additional licences are likely to be required.
"Robeco believes the establishment of a WFOE is an exciting first step to tap into the potential the market has to offer," says the company.
©2016 funds global asia
At times like these, HSBC Asset Management easily pivots towards emerging markets.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
Contradictory market sentiments from commentators have impeded the decision-making powers of the first wave of AI-powered ETFs, says Alvin Chia of Northern Trust Asset Servicing.
The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
