Schroders gets green light for China public funds business

Schroders, green light, China, European, asset manager, China Securities Regulatory Commission, CSRC, public funds European asset manager Schroders has secured approval from the China Securities Regulatory Commission (CSRC) to begin operating its wholly-owned public funds business. The decision, five months after the CSRC granted permission to set up the business, will enable Schroders to market its onshore investment products to retail and institutional investors. Schroders’ group chief executive Peter Harrison referred to the licence award as a “significant moment of strategic importance” that furthers the firm’s investment and service capabilities in China. Schroders Fund Management (China) currently has US$36.5 million in registered capital and offers public and private funds management and fund sales. The move comes at a time when the licensing of private fund managers has slowed dramatically following the implementation of new regulations. Firms wishing to register as private fund managers must now have at least RMB 10 million ($1.4 million) in paid-in capital, up five times from the previous sum of $280,000). According to data from the Asset Management Association of China, just two companies (Jintou Dingxin Private Fund Management and Juhai Venture Capital Management) were registered as private fund managers compared to 139 in the previous month. © 2023 funds global asia

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