What’s new: Citic Securities, China’s largest brokerage, won regulatory approval to set up a new asset management unit, paving the way for it to tap into the mutual fund business.
The new venture, with registered capital of 1 billion yuan ($145 million), was approved to offer securities asset management and overseas securities investment services. The unit is the 25th brokerage-backed asset management firm approved in China.
The establishment of the new asset management unit will allow Citic Securities to apply for a license to manage publicly offered funds.
Background: Citic Securities unveiled a plan in February 2021 to set up an asset management unit to get into the asset management and mutual fund businesses.
Chinese securities companies have accelerated the establishment of new asset management units in a bid to get mutual fund licenses for new business expansion.
In May 2022, the China Securities Regulatory Commission eased controls on mutual fund business licenses to allow financial institutions to apply through a subsidiary in addition to up to two fund management companies they can invest in.
Citic Securities owns a 62% stake in China Asset Management Co. Ltd.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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