Mainland asset managers upping registered capital
21 August 2013
By Asia Asset Management
An increasing number of asset management firms in China have raised registered capital to finance their business growth, taking the ratio of asset managers with registered capital of more than 300 million RMB (US$47.6 million) to about 10% of total asset managers there, according to a report from China Securities Journal.
On August 17, Essence Fund announced that it has received approval from the regulator to raise its registered capital from 200 million RMB to 350 million RMB. Essence Fund is the fifth asset manager to boost its financial muscle this year, after BNY Mellon Western, Lombarda China Fund Management, Bosera, and Orient Fund.
Despite the fact that 60 out of the 82 registered Mainland asset managers have registered capital of less than 160 million RMB, latecomers such as Aegon-Industrial Fund Management and SSgA recently broke into the market with registered capital levels between 200 million RMB and 500 million RMB. The combination of this and the rising war chests among existing players means industry-wide average registered capital has now risen to 180 million RMB.
Asset managers keep strengthening their financial power to bankroll their businesses, as they increasingly set up new subsidiaries and develop various electronic trading platforms.
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