Related News

Home » Business

Vanguard’s vital initiative

VANGUARD, the world's largest mutual fund company, officially launched its wholly owned subsidiary in Shanghai's free trade zone yesterday with hopes to serve Chinese consumers once the market is opened up.

The office, located in Lujiazui area, will now conduct investment management, investment consulting, researching, and educational functions mainly targeting institutional investors looking to allocate asset overseas.

Its existent clients include insurance, banking, asset managers and other financial institutions.

“This new milestone solidifies our commitment to China,” said F. William McNabb III, chairman and CEO of Vanguard. “Bringing our investment approach to millions of investors in China is an important initiative for Vanguard's International business.”

Charles Lin, managing director and country head of China, said Vanguard hopes that authorities will allow foreign investment fund houses to sell products on the mainland in the next three to five years, when the company can serve ordinary Chinese investors.

He said China's booming stock market, growing affluent population, and expanding mutual fund industry offer huge prospect for the company's development in China.

The company already allocated about 25 billion yuan (US$364 million) in China's domestic A-share market, and runs the first emerging market index fund that includes A shares.

Vanguard joins Fidelity International, J.P. Morgan, Aberdeen Asset Management, and Bridgewater Associates to be the few investment management companies to set up wholly foreign-owned enterprises on the mainland as China gradually liberalizes its capital markets.

Fidelity International this month became the first foreign fund manager to be able to sell private fund onshore to institutional and hign-net worth investors.

The others still need to register with Asset Management Association of China to be able to launch onshore products.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend