Value Partners scores China private fund management license

13 November 2017   Category: News, Asia, China, Global, Hong Kong, Singapore, USA, United Kingdom   By David Macfarlane

Hong Kong-based asset manager Value Partners Group Limited (Value Partners) says its wholly-owned subsidiary, Value Partners Investment Management (Shanghai) Limited (VP Investment Shanghai), has successfully registered as a private fund management (PFM) firm with the Asset Management Association of China (AMAC).

Dr. Au King Lun

In doing so, the firm becomes the first Hong Kong-headquartered asset manager to receive approval for a PFM license. In a November 10 company statement, Value Partners says the approval marks “an important milestone for the growth of the deep and special ties that the Special Administrative Region’s financial services sector unequivocally shares with mainland China”.

“We are honoured to be the first Hong Kong-headquartered asset manager to receive a private fund management license and we thank AMAC and the China Securities Regulatory Commission (CSRC) for their continued support,” says Dr. Au King Lun, chief executive officer of Value Partners.

VP Investment Shanghai will be able to develop its own-branded onshore investment products for eligible institutional and high net worth investors in China through having the PFM license, which the firm says is “a key pillar of the group’s multi-pronged China strategy”.

“We are excited to embark on this new phase of growth as we continue to strengthen our position as an investment solutions provider to investors in China and a China investments expert to investors elsewhere in the world,” Dr. Au says.

Yu Xiaobo, investment director and head of China business at Value Partners, adds: “China’s burgeoning demand for investment products presents an exciting setting for Value Partners to leverage on its 24 years of proven investments expertise on value investing to offer world class asset management services for our investors.”

Value Partners established its Shanghai office in 2009, making the firm one of the first foreign asset managers to tap into China’s onshore market. The group’s China business currently comprises of a 20-plus strong team across investment management, business development and legal and compliance.

The firm has made progress in expanding its global network in recent years with the opening of a Singapore office in 2014 and a London office in 2016.

This September, for example, it entered into a global strategic partnership with US media conglomerate Forbes Global Media Holdings as part of plans to bolster its international distribution network. Value Partners’ Chairman and Co-Chief Investment Officer Cheah Cheng Hye had said then that he aims to develop the company into one of the top Asian asset management firms over the long term by expanding overseas.

Value Partners is one of Asia’s leading independent asset managers. As of September 30 this year, it had US$16.5 billion in AUM.