What’s new: China picked up the pace for opening up its domestic stock market by giving approval of four wholly foreign-owned fund managers in just over a month this year, compared with just one such approval last year.
Last week, Morgan Stanley gained full control of its fund management joint venture in China after the China Securities Regulatory Commission (CSRC) gave approval for the U.S. bank to boost its stake in the Shenzhen-based Morgan Stanley Huaxin Fund Management Co. to 100%. JPMorgan Chase & Co. also recently gained regulatory approval for full control of its fund joint venture in China.
There are now seven foreign wholly owned mutual fund operators, including Fidelity International Ltd., Neuberger Berman Group, BlackRock Inc., Schroders Plc and Manulife Financial Corp.
Last month, the CSRC also approved Standard Chartered Plc to set up a wholly owned securities brokerage, allowing the London-based bank to offer services such as underwriting and asset management in China.
The background: Global companies are making headway in China’s mutual fund and securities sectors, betting on the country’s recovery after reopening from pandemic lockdowns while the developed world grapples with rising interest rates and recession fears.
Chinese firms are beating their U.S. and European rivals early in the year on equity financing. Chinese companies and their shareholders raised $8.1 billion since 2023 began, compared with $4 billion by U.S. companies and $1.1 billion by those in Europe, Bloomberg-compiled data show.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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