AllianzGI joins a long list of foreign firms to have received the go-ahead from the CSRC.
The fund is expected to complete its IPO by the end of the first quarter of this year.
The approval came weeks after rival JP Morgan’s authorisation.
It is only the second asset manager to have both a wholly owned fund management company and a majority-controlled wealth management joint venture.
The adjustments will be implemented in about three months time.
Foreign funds will now be on a par with domestic funds.
The country’s securities regulator has extended the scope of the Shanghai-London Stock Connect scheme.
China’s third bourse started trading 81 stocks on Monday.
China Securities Regulatory Commission has tightened its grip on the nation’s mutual fund market.
The Shenzhen branch of China Securities Regulatory Committee (CSRC) has given the firm a distribution licence.