What’s new: Allianz Global Investors GmbH is seeking to set up a wholly owned mutual fund manager in China, as the German financial giant looks to take a bigger foothold in the 27 trillion yuan ($3.9 trillion) market.
The China Securities Regulatory Commission (CSRC) received Allianz’s application on Monday, according to the regulator’s website.
If the CSRC approves the application, the new company will allow Allianz to expand into China’s lucrative mutual fund business. Since 2003, it has had a presence in the market through a joint venture known as CPIC Fund Management Co. Ltd.
The background: China has sped up approvals of wholly foreign-owned mutual fund managers this year as part of ongoing efforts to open up its financial markets.
So far, the CSRC has given eight foreign companies the go-ahead to independently establish or take full control of mutual fund management businesses in China.
BlackRock Inc., Fidelity International, Neuberger Berman Group LLC, Schroders PLC and AllianceBernstein LP have been cleared to set up wholly owned mutual fund subsidiaries, while Manulife Financial Corp., JPMorgan Chase & Co. and Morgan Stanley have won approval to buy out their local partners.
Related: Morgan Stanley Wins Control Over China Fund as Competition Heats Up
Contact reporter Zhang Ziyu (ziyuzhang@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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