Hua An sets its footprint in Shanghai’s FTZ

09 October 2013   Category: News, China   By Hui Ching-hoo

Hua An Asset Management has become the first Mainland asset manager to set up a subsidiary in the newly-launched Shanghai Free Trade Zone (SFTZ).     
The new subsidiary – Hua An Weilai Asset Management – has been formed between Hua An and Shanghai Dun Xiang Investment with registered capital of 30 million RMB (US$4.76 million). The latter holds a 49% stake in the JV, while Hua An owns the remainder. 
Hua An’s President Li Qing notes that the formation of the pilot free trade zone (FTZ) marks a significant step on China’s way to integrating with the global market. To complement the ethos of the zone, the subsidiary says its services and corporate governance will be in line with the international standard. 
Hong Yan, deputy director and professor of Shanghai Advanced Institute of Finance, tells Asia Asset Management that the launch of the SFTZ will give foreign asset managers an opportunity to set up their own platforms in the zone to attract Chinese investors in ways they were previously unable to. Foreign asset managers could also set up subsidiaries to manage both foreign assets for Chinese investors and China-based assets for international investors, he notes.
“Details of the related regulations have yet to be released, but foreign asset managers could work to better understand the needs and characteristics of Chinese investors, identify potential partners and sources of talent, and follow close the development of the FTZ in order to seize the opportunity as it appears,” Dr. Yan adds.