China’s regulators have issued the green light to three more international asset managers and custodians to operate wholly-owned businesses in China’s domestic funds market.
Fidelity International has obtained the necessary approval from the China Securities and Regulatory Commission (CSRC) to conduct mutual fund and private fund management business in mainland China.
The business will be based in Shanghai and will launch with US$30 billion of registered capital.
Fidelity filed its application in May 2020 and becomes only the second global asset manager, after Blackrock, to receive a licence.
The CSRC has also approved JP Morgan’s application to assume 100% control of its mainland securities business.
The US bank had increased its stake in the joint venture to 71% in November last year but now becomes the first foreign firm to fully own a securities venture in China.
Meanwhile BNP Paribas has been granted a licence to conduct custody business for China’s qualified foreign institutional investor scheme (QFII).
The scheme has become one of the main routes for foreign investors to access China’s equities and bond markets.
“As constraints on foreign participation in China’s markets abate, we expect a wave of renewed interest from offshore institutional investors,” said Philippe Kerdoncuff, head of BNP Securities Services China.
“The licence also closely follows the removal of quotas and the expansion of scope for investments under the QFII scheme, making this an exciting time for new entrants to the onshore custody space,” he added.
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