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Onshore fund approvals up in Q1

Foreign fund houses are increasingly launching onshore funds as China continues to open its financial services industry.

In Q1, 10 private fund management (PFM) products received approval from the Asset Management Association of China (Amac), compared with five in the corresponding period in 2019, according to Amac’s records.

Having a PFM licence enables foreign entities to develop and sell funds investing in onshore assets to domestic qualified investors, which include institutional and high net worth investors.

Among the 10 products, six are from UBS Asset Management. In total, UBS AM manages 15 PFM products, which is the largest number of any foreign firm.

Hong Kong-based Value Partners has the second largest number of onshore funds via the PFM licence, with 10 products.

There are 26 foreign PFM licence holders which together have launched 78 onshore funds, with total AUM of RMB 7.88bn ($1.11bn) as of the end of 20 March, according to a statement from Amac.

Several asset mangers have obtained the PFM qualification this year, including Income PartnersRussell InvestmentsSchroder Adveq and BEA Union Investment.

Usually, there is a six-month limit for new PFM license holders to register a fund for launch, but that has recently been extended to 12 months due to the coronavirus outbreak.

2020 Q1

Asset manager Product name Authorisation date
UBS AM UBS (CN) China Yufeng Fixed Income Bond Strategic Series 3 Private Securities Investment Fund 31-Mar
UBS AM UBS (CN) China Customized Equity Private Securities Investment Fund Series 1 31-Mar
UBS AM China Equity Select Private Security Investment Fund No 7 12-Feb
UBS AM China Equity Select Private Security Investment Fund No 2 13-Feb
UBS AM China Equity Select Private Security Investment Fund No 3 13-Feb
UBS AM China Ruixiang Bond Strategy No 6 Private Securities Investment Fund 5-Feb
Value Partners Value Partners China Zhongrui Hugangshen No 1 Private Securities Investment Fund 31-Mar
Value Partners China Jingdu Private Securities Investment Fund 24-Mar
Two Sigma China Juliang Macro Strategy No 1 Private Securities Investment Fund 4-Mar
Neuberger Berman  Galaxy Capital – Neuberger Berman Xinhuai No 1 Collective Asset Management Plan Fund 15-Jan
Source: Amac

2019 Q1

Asset manager Product name Authorisation date
APS Asset Management Shihui Private Securities Investment Fund 2-Jan
Winton Capital China Diversity Select No 5 Private Fund 2-Jan
Fidelity China Bond Select No 1 Private Fund 17-Jan
Winton Capital China Diversity Select No 2 Private Securities Investment Fund 17-Jan
Neuberger Berman Bond No 2 Private Securities Investment Fund 3-Mar
Source: Amac

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