JPMorgan Asset Management’s China retail asset management subsidiary will go head-to-head with about half a dozen top local fund houses after the Lunar New Year holiday to raise money for exchange traded funds that track a newly established index, reports the Financial Times. The move marks the first time a wholly foreign-owned enterprise will compete…
By Reuters Staff
2 Min Read
SHANGHAI, May 7 (Reuters) - China has approved domestic fund managers’ first exchange-traded funds (ETFs) based on Hong Kong’s Hang Seng TECH Index, state media said on Friday, giving Chinese investors increased access to such big-name stocks as Alibaba and Tencent.
Regulatory approval to launch such ETFs was obtained by six Chinese mutual fund managers, including China Asset Management, Dacheng Fund Management and E Fund Management, the Shanghai Securities News reported citing the six fund houses.
The Hang Seng TECH Index tracks the 30 biggest technology companies listed in Hong Kong. Constituents include Alibaba Group Holding Ltd, Tencent Holdings Ltd, Meituan, NetEase Inc, JD.com Inc and Semiconductor Manufacturing International Corp.
China approves ETFs tracking HK-listed tech giants - state media Toggle share menu
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China approves ETFs tracking HK-listed tech giants - state media China has approved domestic fund managers first exchange-traded funds (ETFs) based on Hong Kong s Hang Seng TECH Index, state media said on Friday, giving Chinese investors increased access to such big-name stocks as Alibaba and Tencent.
FILE PHOTO: Chinese and Hong Kong flags flutter next to bull statues outside the Hong Kong Exchanges, following the COVID-19 outbreak, at the financial Central district in Hong Kong, China September 14, 2020. REUTERS/Tyrone Siu/File Photo
07 May 2021 10:25AM Share this content
In a surprise about-face, the U.S. giant dropped its bid to set up a wholly-owned mutual fund company in China, scrapping months of planning for what a former executive said could be a $5 trillion business one day.
Instead, the firm said Tuesday it will focus on a joint venture robo adviser platform with Ant Group Co., Jack Ma’s embattled fintech giant that’s facing a regulatory crackdown to overhaul its business and create more competition.
The pivot underscores the challenges facing global firms as they try to navigate China’s $45 trillion financial services market, where entrenched local competition, low brand recognition and joint venture limitations have hampered expansion plans.
Vanguard Scraps China Mutual Fund Plan And Pivots to Ant Tie-Up
Bloomberg 3/17/2021 Bloomberg News
(Bloomberg) For years, global money managers have been clamoring for a chance to run their own businesses in China, unshackled from local partners to gain a bigger slice of the $13 trillion investment market. Vanguard Group Inc. is going the other way.
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In a surprise about face, the U.S. giant dropped its bid to set up a wholly-owned mutual fund company in China, scrapping months of planning for what a former executive said could be a $5 trillion business one day.
Instead, the firm said Tuesday it will focus on a joint venture robo adviser platform with Ant Group Co., Jack Ma’s embattled fintech giant that’s facing a regulatory crackdown to overhaul its business and create more competition.