Foreign private equity fund management firms eye China
UBS, Man Investment and Fullerton Fund Management are among an increasing number of overseas fund management agencies that are entering the Chinese market
Over the past three months, three foreign private equity fund management firms —UBS, Man Investment and Fullerton Fund Management — have acquired licences for their businesses in China, as an increasing number of overseas fund management agencies enter the Chinese market, the 21st Century Business Herald reported.
Prior to this, Fidelity International was granted a private equity fund management licence, the first among its peers, in January.
In July, UBS Asset Management (Shanghai) Ltd., a wholly-owned unit of UBS, received the same licence. It was followed by Man Group, the world’s largest publicly traded hedge fund company, and Fullerton Investment Investment (Shanghai) Co.
Insiders think this is just the beginning of foreign capital inflow into the sector, though some believe their investment style may not fit into the market easily.
On the other hand, there is a trend indicating that more foreign public fund offerings will be granted licences in China with more than a 49% stake in their joint ventures with Chinese partners.
Last year, Hang Seng Qianhai Fund Management, which manages the public offering of funds, was allowed to hold 70% stake in its Chinese operation.