By enlarging their investment scopes, the regulator is also paving the way for them to expand their businesses in China
Shanghai has drafted eagerly awaited changes to its qualified domestic limited partnership scheme. Foreign asset managers are also hoping for clarity on Chinese mutual fund licences.
The fund house aims to launch a Ucits China bond fund, set up a wholly foreign-owned entity in Shanghai, register for mainland bond market access and gain a QDLP licence. And that's not all.
Foreign asset managers under the QDLP scheme may be deterred from setting up private fund businesses in China because of constraints on cross-border investing and fundraising.
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.
Uncertainty is rife over foreign asset managers' moves to set up wholly foreign-owned entities in China thanks to the recent suspension of investment company registrations.