Invesco Scales Chinese Wall
This year has seen a flurry of global asset managers winning regulatory approval to establish wholly-foreign owned enterprises in China, one more has joined the China club.
Invesco, the independent global asset manager announced that its wholly-foreign owned enterprise (WFOE) in Shanghai has registered as a private fund manager with the Asset Management Association of China (AMAC).
The registration enables Invesco to launch private securities investment funds in China which will invest in the country’s domestic securities market, and to accept investment from qualified Chinese investors into such private securities investment funds, the firm said in a press release.
Stemming Fund Flows
Invesco established its Shanghai WFOE in April 2017. The Shanghai based team comprises investment and sales professionals as well as operations staff with local and global expertise. Invesco has had a presence in Asia since 1962, and today manages over $92 billion on behalf of clients in Asia Pacific.
In an effort to stem outflows and encourage wider use of its currency, China has been expediting the opening-up of its capital markets. With an eye on the growing onshore wealth in the country, global fund managers have been fine-tuning their business for the Chinese onshore market.
UBS Asset Management recently announced it had secured a licence to offer onshore funds for stock, bond and multi asset investment in China, that followed on from Fidelity International who in May this year beat global peers to start a private fund in Shanghai. Blackrock also plans to set up a WFOE first for its private fund business in the nation.
