The China Securities Regulatory Commission (CSRC) has given Fidelity International the go-ahead to set up a wholly foreign owned enterprise mutual fund company, according to the regulator’s website.
Within six months upon obtaining this initial approval, Fidelity has to complete the establishment of its retail mutual fund unit, including hiring senior staff, and subscribing to capital contributions.
Fidelity would then need to apply for a securities business licence, and launch public mutual funds within six months after obtaining the permission to start operations.
“Fidelity International will continue to make preparations following the regulatory instructions and looks forward to receiving the other approval on business operation,” said Fidelity spokesperson.
The mutual fund business will be run by a Shanghai-based new company, which is wholly owned by Fidelity International Asia Holdings, a Singapore-based entity.
It has a registered capital of $30m and can conduct public and private mutual fund management business, according to the CSRC.
China officially lifted the investment limitation for foreign fund management firms with a mainland joint venture in April 2020, while Fidelity submitted its application to the CSRC to establish a wholly-owned mutual fund firm a month later.
“We hope to marshal our experience and knowledge accumulated all over the world to provide domestic investors with the best investment solutions to meet their needs,” said the Fidelity spokesperson.
Fidelity is the second firm to receive approval, after Blackrock received its onshore retail license in June. Other foreign asset managers that have filed the application for the licence include Neuberger Berman, Schroders PLC and VanEck, who are still waiting for regulatory approval, according to the CSRC.
