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.