Schroders has received the green light to operate a wholly foreign-owned public fund business in China.
The China Securities Regulatory Commission granted Schroder Fund Management (China) the public fund business licence to begin operations on 7 June, according to an announcement by the company.
“This is a significant moment and of strategic importance to Schroders. It further strengthens our investment and service capabilities in China, allowing us to take advantage of the market growth in China and positioning us well to deliver strong returns in the medium to long-term,” said Peter Harrison, group chief executive at Schroders.
According to the approval notice, the registered capital of Schroder Fund Management (China) is Rmb260m ($36.5m) and the area of operations include public funds management, fund sales and private fund management.
The fund management company aims to offer innovative onshore investment products and solutions to retail clients, alongside asset management services to institutional clients, to help them achieve their long-term financial goals, the announcement added.
“We have on-the-ground investment teams and expertise spanning Chinese equity, fixed income and multi-asset investments and expect to launch our first batch of products later in 2023,” David Guo, Schroders’ chief executive officer said.
The approval for operation came almost five months after the authorities awarded the British asset manager the permission to open a wholly owned fund management company.
“Receiving regulatory approval to commence business as Schroders Fund Management marks another important milestone for Schroders Group in China, the second largest and the fastest growing emerging market in the world,” the announcement said.
In 2022, Schroders opened a wealth management joint venture, Schroder BOCOM Wealth Management, with the Bank of Communications.
Schroders also opened its first representative office in Shanghai in 1994 and operated in China through the Qualified Domestic Institutional Investor and Mutual Recognition of Funds schemes.