US fund manager Van Eck is reportedly set to abort its plan to establish a wholly-owned mutual funds business in mainland China. It would make Van Eck the first overseas firm to take such a move amid rising tension between the US and China. Van Eck was one of several firms to apply for a licence when China removed the caps on foreign ownership in 2020. And in recent weeks, the Chinese authorities have granted approvals for overseas firms either looking to take full ownership of joint ventures set up with Chinese partners or set up their own wholly-owned fund businesses. Fellow US asset manager Neuberger Berman has announced that its first retail fund in China, the China Guardian One-year Holding Bond fund, has been approved for sale. Van Eck’s withdrawal was first reported by Reuters, stating that the decision was made in December, although the asset manager has yet to comment publicly. In addition to the political tension between the US and China, delays in launching the business due to Covid restrictions were also cited as reasons for the move. © 2023 funds global asia