Nine well-known global asset management companies (AMCs) signed agreements with the local government to set up their offices in Lujiazui less than two weeks after the central authorities said Shanghai’s Pudong New Area should pioneer higher level reform and opening-up. Among the nine AMCs are T. Rowe Price, a U.S. firm that manages USD1.5 trillion worth of assets; Aegon, the Netherlands’ largest asset manager; Charles Schwab, a prominent U.S.-based personal financial services provider; and Alter Domus, Luxembourg’s largest fund and corporate services provider. Pudong has been tasked to serve as a strategic link between the domestic and international markets and to further develop its financial markets and products. Pudong’s Party Secretary Weng Zuliang said the further development of local financial services is essential to consolidate the area’s role as a strategic link.
Therefore, Pudong should grow into a hub for the world’s top AMCs. So far, nine of the world’s top 10 AMCs have set up operations in Lujiazui. Over 90% of the foreign AMCs operating in China are based in Pudong. A global asset management partnership program with 82 members was also unveiled in Pudong. It aims to facilitate cooperation among various financial institutions and strengthen communication between domestic and international AMCs, said Yang Chao, Deputy Director of the Pudong New Area. Lisa Hunt, Director of International Services for Charles Schwab, said the numerous encouraging policies and measures announced in the latest guideline will support the development of Pudong as a demonstration zone for high-level reform and opening-up. The program will enable Pudong to take the next step to become “a pre-eminent center of international finance”, she said.
Thomas Poullaouec, Director of Multi-asset Solutions at T. Rowe Price Asia-Pacific, said China is a very promising market for both domestic and international investors. Aegon Asset Management’s CEO Bas NieuweWeme echoed Poullaouec’s views. Aegon, he said, is allocating more and more resources to raise funds from its global client base to invest in China. On June 11, BlackRock, the world’s largest AMC, received the green light from the Chinese regulator to set up a wholly-owned mutual fund business in China, making it the first of its kind in the country. With an office in Lujiazui, BlackRock is preparing to launch its first batch of products with the newly approved wholly owned entity, said Zhang Chi, General Manager of BlackRock Fund Management Co, the parent company’s local unit. “As a licensed institution, we are now not only able to sell our products to Chinese investors but also bring our experiences in investment and risk management, as well as many mature global practices to the Chinese market, he said, as reported by the China Daily.
