Aberdeen Standard Investments’ wholly foreign-owned enterprise (WFOE) in Shanghai was granted the licence, which allows the firm to develop onshore private securities investment products targeting qualified (high net worth and institutional) investors in mainland China.
The firm was among the first foreign asset managers to establish a WFOE in Shanghai in 2015, making them eligible to apply for the PFM licence.
Once the licence is granted, the firm faces a six-month deadline to launch its first product. It means that ASI’s Chinese WFOE will have to roll out its first onshore fund by June 2018. A Hong Kong-based spokeswoman for the firm told FSA that the first product would be an equity fund, with a focus on bottom-up stock selection.
ASI is planning to invest in more resources on the ground in Shanghai, said Amy Wang, head of China at the firm, in a statement. The firm aims to expand its mainland team by adding staff to support portfolio management, investment execution and operations.
Wang joined the firm in September from Pioneer Investments to lead the Shanghai-based WFOE. Wang’s appointment came right after the announcement in August that the merger between Aberdeen Asset Management and Standard Life had been completed.
ASI is the eighth foreign firm to obtain a PFM licence, out of 22 with IM WFOEs in China. Only Fidelity International and UBS Asset Management have launched a product so far. Fullerton intends to launch an equity fund and Neuberger Berman plans to launch a fixed income fund.
|
Firm |
PFM licence obtained | Products launched |
| Fidelity International | January 2017 |
China Bond No. 1 Private Fund |
|
UBS Asset Management |
July 2017 | China Equity Private Fund Series 1 |
| Fullerton Fund Management | September 2017 |
– |
|
Man Investments |
September 2017 | – |
| Invesco | November 2017 |
– |
|
Neuberger Berman |
November 2017 | – |
| Value Partners | November 2017 |
– |
|
Aberdeen Standard Investments |
December 2017 |
– |
