BEA Union Investment Gains Private Fund Management License in China
BEA Union Investment Management has announced the acquisition of a private fund management license from the Asset Management Association of China by its subsidiary BEA Union Investment Management (Shenzhen).
Eleanor Wan, Chief Executive Officer, BEA Union Investment, said “We are very excited to obtain the private fund management (“PFM”) license. This is another significant milestone for our business development in China following the establishment of BEA Union Investment Management Shenzhen (BUIMS) in November 2017. The PFM license enables BUIMS to raise and invest capital onshore, and to launch private funds catering to mainland qualified investors.”
Wan continued “We can see substantial potential in the development of private funds in China, especially in the Greater Bay Area (GBA). BUIMS is strategically located in Qianhai of Shenzhen, the financial hub of the GBA. The population in the GBA exceeds 71 million (as of June 2019, according to a HKTDC report) and contributes one-eighth of the country's GDP, which represents excellent opportunities for asset managers to provide wealth solutions for high net worth individuals and institutions.”
Rex Lo, Managing Director of Business Development, BEA Union Investment, said “Over the past few years, policies implemented by Chinese regulators have been aiming at improving market efficiency in the local asset management industry and enhancing protection for investors. Meeting the needs of an increasingly affluent middle class in China will require a great deal of professional expertise to fulfil both investor demand and regulatory requirements. Foreign asset management players with sound investment experience in onshore securities can see many opportunities in the opening of the China market.”
BEA Union Investment has had a presence in China for the past ten years.
Lo added that “The new license allows us to extend our investment management expertise in asset management from offshore to onshore. To start with, we will partner with local securities firms, the financial institutions most active in distributing private fund products, to introduce our onshore investment capabilities to qualified investors in mainland China.”
BEA Union Investment had been actively investing in the China market via Qualified Foreign Institutional Investors ("QFII"), China Interbank Bond Market, Stock Connect and Bond Connect. Also, partnering with its business partner, several BEA Union Investment funds are distributed to Chinese retail investors under the Chinese Qualified Domestic Institutional Investor (“QDII”) programme. Recently, BEA Union Investment’s two retail funds are registered via Mutual Recognition of Funds and are therefore distributed via distributors and online platforms in China.
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