British Asset Manager Baillie Gifford Opens Wholly Owned Shanghai Unit
What’s new: British asset manager Baillie Gifford set up a wholly owned unit in Shanghai, becoming the latest foreign institution to target domestic investors in the world's second-largest economy.
Edinburgh-based Baillie Gifford manages $324 billion of assets globally. As of June 30, the enterprise invested more than $55 billion in more than 100 Chinese companies, including Alibaba Group Holding Ltd., Tencent Holdings Ltd., Meituan Dianping, electric car startup Nio, Pinduoduo and TAL Education Group.
Baillie Gifford’s Chinese unit obtained approval to launch private equity funds in China. The asset manager is preparing to start its first fund to invest in Chinese A shares, said Amy Wang, Baillie Gifford's China chief.
The background: Baillie Gifford became the 29th foreign asset manager to set up a wholly owned securities investment fund unit in China as the country accelerates the opening-up of its financial markets.
In November 2017, China promised to allow foreign investors to own as much as 51% of any joint venture in the mutual fund or the securities futures industry, under an accord reached during U.S. President Donald Trump’s visit to Beijing.
Starting April 1, China scrapped the limit on the ratio of foreign shareholding in securities and fund management companies, allowing them to set up wholly owned units on the Chinese mainland.
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