The portfolio holds a potential upside for the Korean asset owner and its partners, its CIO tells AsianInvestor.
Beijing pledged last week to raise the 49% cap on foreign stakes in mainland fund firms and to give details on investment management WFOEs, further widening the options for overseas fund houses.
The Hong Kong bank plans to set up a joint venture funds company with majority control in Shenzhen’s Qianhai zone. It would be the first such mainland JV and a significant milestone in China’s funds liberalisation.
China Life’s offshore investment arm has been focusing more on third-party high-net-worth and institutional segregated-account business, a move that seems to be paying off.
The Japanese asset manager has set up a private equity joint venture, which may stimulate competition between Shenzhen and Shanghai and herald more such deals, said Z-Ben Advisors.
State Street Global Advisors’ reported move to exit its mainland joint venture is seen as highlighting a difference in approach to risk control between the US firm and its Chinese partner.