Mainland managers establish offshoots to expand product offerings
07 August 2013
By Asia Asset Management
An increasing number of Mainland asset managers are looking to set up subsidiaries engaged in the management of segregated accounts in an effort to diversify their business models – most Mainland asset managers focus specifically on mutual funds. Figures from the China Securities Regulatory Commission (CSRC) show that 37 licenses have been granted to the asset managers’ affiliates up to the end of August 6, according to a report from China Securities Journal.
That means almost half of China’s 82 registered asset managers have now established offshoots managing segregated accounts. The 37 asset managers’ affiliates currently manage a total of 369 investment accounts, for total AUM of 150 billion RMB (US$23.8 billion).
The affiliates are mainly structured in the form of joint ventures. Great Wall Fund Management is among the latest asset managers to receive approval from the regulator; allowing it to form a 78:22 JV with listed real estate and engineering conglomerate NORINCO International.
Among the top ten asset managers, only China Southern, Fullgoal, and HuaAn are yet to unveil plans to set up affiliates.
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