The translation of Europe's Ucits funds regulations into Mandarin is evidence of increased Chinese interest in these vehicles, which could unlock large inflows for Europe-domiciled funds.
According to Karl Egbert, partner at law firm Dechert, the publication of the Ucits IV rules in Mandarin "could indeed show that China is softening its stance to investing in Ucits funds which is big news and potentially big capital inflows for EU funds".
The asset management division of the European Commission this year published the Ucits IV rules in Mandarin for the first time, alongside English and French, explaining it had done so in response to greater interest from Chinese regulators and investors.
The prospect of the Chinese market opening up to Ucits funds is exciting for the many asset managers with funds domiciled in the likes of Luxembourg or Ireland.
Unlike cosmopolitan Hong Kong, which has a thriving market for Ucits funds, China is difficult for foreign companies to access, yet it is a very attractive market for asset managers because of its vast population and its high savings rate.
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