The qualified domestic limited partnership (QDLP) programme allows managers to raise money in China, with assigned quotas, to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and real estate.
The investors who are allowed to invest in QDLP products are qualified investors, including institutional and high net worth investors.
Barings’ investment management wholly foreign-owned enterprise (IM WFOE) in Shanghai received a QDLP licence from the Asset Management Association in China this month, according to the records from the association.
FSA sought more information from Barings about the licence, but the firm declined to comment about whether it has received its quota and which product it plans to launch under the scheme.
Barings established its IM WFOE in Shanghai in August. The US-based firm also became a first time renminbi qualified foreign institutional investor (RQFII) quota holder in September. The RQFII scheme allows foreign managers to invest in onshore Chinese assets, within allocated quotas.
Nomura Asset Management
Separately, Nomura Asset Management has registered its first product under the QDLP scheme, according to Amac records.
The product, the Nomura Japan High Conviction Overseas Private Fund, is a Japan-focused equity fund. It will be the first Japanese equities product under the QDLP programme.
FSA sought more information from Nomura AM, but the firm declined to comment about how much quota it has under the QDLP scheme.
Nomura received its QDLP licence in August. Its IM WFOE was established in January.
This year, only a few managers, including Neuberger Berman and Allianz Global Investors, have launched QDLP products. BNP Paribas Asset Management is also expected to offer its water-focused strategy managed by Impax Asset Management, in which the French firm owns around a 25% stake.
The QDLP programme was revived at the beginning of 2018 after a three-year halt by the mainland regulator.
There are at least 20 foreign managers who have received a QDLP licence, according to data from Z-Ben Advisers. This year alone, 13 managers were granted a licence, with JP Morgan Asset Management and Morgan Stanley Investment Management being the latest to join the scheme in October.