BlackRock, Neuberger Berman Apply for Wholly Owned China Mutual Funds
What’s New: American investment giants BlackRock Inc. and Neuberger Berman applied to China’s securities regulator to set up wholly owned mutual fund businesses in the country, the first international institutions to do so.
Records from the official website of the China Securities Regulatory Commission indicated that the applications were received Wednesday.
Background: Starting Wednesday, China allowed foreign investors to start wholly owned mutual fund management and securities businesses as part of the phase-one trade deal with the U.S. and in line with the country’s previous commitment to open up the financial sector.
Several foreign institutions previously signaled intentions to set up new wholly owned fund management units or buy out existing joint ventures.
China had 128 mutual fund management enterprises overseeing 14 trillion yuan ($2 trillion) of assets as of November, among which about a third are Sino-foreign joint ventures, according to the Asset Management Association of China.
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