China grants Deutsche Bank fund custody license

Chinese lanternsDeutsche Bank is the latest global player to gain entry into China’s onshore funds market after it was awarded a domestic fund custody license by the China Securities Regulatory Commission (CSRC). The license, subject to an administrative process, will give Deutsche Bank the ability to safeguard assets for mutual funds and private funds domiciled in China. The Chinese authorities’ decision to loosen its restrictions on foreign involvement in its domestic funds market has seen a flurry of activity from both asset managers and asset servicers. In September, Citigroup became the first US bank to receive a fund custody license. Meanwhile, a number of international asset managers have applied to the Asset Management Association of China with the aim of launching private local funds, including Pimco, Baillie Gifford and Russell Investments. In addition, global managers Fidelity, BlackRock and AllianceBernstein have applied to set up wholly-owned fund units in China. “Many of our global institutional clients are actively exploring and acting on the unfolding opportunity to tap into the exponential China market, which is still fast growing and opening up,” said Rose Zhu, Deutsche Bank’s China chief country officer. “At the same time, the booming domestic fund industry is looking for global expertise to foster further development,” she added. Anand Rengarajan, head of securities services Asia Pacific at Deutsche Bank said: “We are optimistic about the prospects of China’s fund management market and hope to continue to sharpen our local securities services offering onshore.” © 2020 funds global asia

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