Opening the door to the Chinese market Feb 18, 2021 By Funds Europe
Changes to licencing and ownership rules in the Chinese market are presenting opportunities for foreign asset managers to attract new investment flows from domestic investors, according to findings from
Standard Chartered.
Previously, foreign asset managers could launch funds on the Chinese mainland via a private fund management (PFM) licence, or through the Qualified Domestic Limited Partnership (QDLP) scheme.
Under the PFM scheme, foreign asset managers may enter into a joint venture with a domestic partner or establish a wholly-owned foreign enterprise (WFOE) that operates as a private fund manager, offering open-ended collective investment funds targeted at qualified investors (typically institutional and high net-worth) investors.