Shenzhen was China's third city to host a wholly foreign-owned investment management company, following Shanghai and Tianjin. It could appeal to smaller or tech-savvy asset managers.
It makes sense for Chinese regulators to restrict domestic insurance firms' aggressive moves into risk assets. Doing so should reduce market volatility and boost bond liquidity.
The bank will hold a 70% stake in, and has chosen a chief for, the first foreign-majority-owned joint-venture fund house in China, as offshore players mull how best to access mainland clients.
The wind power-focused infrastructure fund pioneers the “QFII for alternatives” and puts Qianhai on the map.
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.
A total of four firms have now won approval under Shenzhen's qualified domestic investment enterprise scheme, under which local asset managers can sell overseas alternative funds.
A proposal by the HKMA that urges asset managers in Hong Kong to move back-office functions to Qianhai is over ambitious and won't work without incentives, say industry figures.