The mainland securities regulator has given approval for asset managers to manufacture funds of funds, and some firms have been working towards this in recent months.
The Chinese asset manager's co-head of equity funds predicts a difficult year ahead and further falls for A-shares, as the firm starts selling its first three mainland products in Hong Kong.
Persistent AM’s tie-up with GF Asset Management is the first registered in Shanghai’s free-trade zone to get a QDLP quota amid reform. It plans to launch a product next month.
Shanghai included China Investment Fund Management in its cross-border alternatives investment scheme, a further expansion that also creates rivalry among local cities.
Foreign managers with a joint venture in China are likely to leverage the partnerships to their advantage under mutual recognition. But analysts say the quality of the cross-border relationships will be tested.
The head of the offshore unit of China's CIFM has tipped the scheme to start in the second half of this year. He outlined plans for tapping it as well for building business elsewhere in Asia.
Despite the proliferation of foreign fund houses and rising domestic demand for diversification, competition and fuzzy regulation are seen to be holding back industry growth in China.
Even as the CSRC ends its moratorium on new mutual funds, JPMorganÆs funds JV in Shanghai halts new subscriptions in the face of A-share mania.