The fund house is the first foreign firm to win approval to manufacture private funds for onshore institutional and high-net-worth clients. And further licences are in the pipeline.
Sandra Lu, partner of law firm Llinks, expects the first batch of wholly foreign-owned entities to register for private fund businesses in the next month or two.
Offshore asset managers’ wholly foreign-owned entities in China can now register to operate as onshore private fund firms, with Aberdeen, Bridgewater and Fidelity set to be first in line.
Julia Leung of Hong Kong's securities regulator hopes funds will be approved under the mutual recognition scheme this year, as asset managers and distributors work on their plans.
With Chinese regulators making stabilisation of the A-share market their top priority, market players say approval of funds under mutual recognition could be delayed, along with the launch of Shenzhen Connect.
Regulator sets out beneficial ownership situation for Stock Connect's foreign investors, months after the trading link went live. The move could pave the way for the launch of Shenzhen Connect.
The ambitious mainland law firm is to open a Hong Kong office this month as a base to offer its services more broadly, in a drive to capitalise on financial liberalisations in China.
The CSRC is said to be drafting new legislation to prepare for a harmonisation of QFII and RQFII rules. And Luxembourg is to be awarded Rmb80 billion in RQFII quota, according to the country's ambassador.
Regulatory freedoms granted to segregated-account subsidiaries of Chinese fund firms have seen the segment swell, but the risk of investor losses is going unnoticed, say sources.