Germany’s AllianzGI looks to tap China’s ‘thriving investment landscape’ as it gets licence to operate onshore fund management company
- The approval marks ‘a milestone in our investment journey,’ says Desmond Ng, head of Asia-Pacific
- Granting of licence comes as China tries to boost foreign investor confidence in a bid to rescue post-Covid economy
“With its vast potential and steady growth, China presents unparalleled opportunities for us to serve our clients and investors as it accelerates the opening of its capital markets,” he said.
“We are excited about the prospects ahead and look forward to establishing long-term relationships in China’s thriving investment landscape.”
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It also comes amid a months-long effort by China to boost foreign investors’ confidence in a bid to rescue the country’s sluggish post-Covid economy.
China’s cabinet, the State Council, issued an action plan in March to attract foreign investment, with measures including the expansion of investment access in financial and hi-tech sectors, increased policy and tax support, the promotion of fair competition, and the alignment of domestic rules with high-level international trade rules.
Setting up its local public fund management business will allow AllianzGI to serve the growing population of retail investors in mainland China, according to Tobias Pross, the company’s chief executive officer. China’s trillion-dollar mutual fund market is poised for strong growth thanks to the country’s ageing demographic, rising household incomes and ongoing pension reforms, he said.
“By continuing to invest in local talent in China and harnessing digital technologies, we aim to create value for our clients and further support the growth of our business in China,” Pross said in a statement on Thursday.
