Manulife is the latest global firm to claim a pioneering acquisition of a wholly foreign-owned entity (WFOE) licence in China.
The firm says its Investment Company WFOE licence is the first of its kind and “paves the way for Manulife to provide its global public market and private assets solutions in the fast-growing asset management industry in China”.
The Investment Company WFOE licence is difficult to obtain because applicants must own a majority stake in an existing entity in China. Manulife met this criteria because it has a 51% stake in Manulife-Sinochem Life Insurance, based in Shanghai.
Companies whose sole business is asset management have historically been limited to owning minority stakes in Chinese joint ventures. Manulife owns only 49% of its Chinese asset management joint-venture, Manulife TEDA Fund Management. The majority stake is held by Tianjin TEDA.
Donald Guloien, president and chief executive of Manulife, says the new licence “underlines Manulife's commitment to China and to the city of Shanghai by supporting its vision as a regional financial centre”.
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