LONDON, Feb. 22 (Xinhua) -- "We are proud to submit our application for establishing a wholly-owned Fund Management Company (FMC) in China," Lieven Debruyne, global head of distribution from Schroders, told Xinhua in a written interview on Monday.
As a famous global asset management company founded in 1804, Schroders has been present in the Chinese market for more than 25 years. On Feb. 18, Schroders applied to China Securities Regulatory Commission for setting up a mutual fund company in China.
"Over the past two and a half decades, Schroders has progressed hand in hand with China's asset management industry," Debruyne said. "As our journey continues, applying for a full FMC license is an important next step for us in our strategy to grow our asset management business in China."
Debruyne said they feel China's retail savings market and the pensions market are ready for investment strategies from global firms. "Schroders can provide an alternative approach to the local asset managers in the country. We are therefore proud to submit our application."
Last year, China lifted the limitations on the ratio of foreign shareholding in securities and fund management firms, allowing them to set up wholly-owned units on the Chinese mainland.
David Guo, Schroders's chief executive officer for China said: "Our FMC license application signifies our commitment in ensuring we stay relevant in the market and can provide diversified solutions -- particularly in sustainable investments and digital -- as the China market continues to evolve."
Schroders noted economic growth in China is set to accelerate in 2021 as the recovery continues and the impact of stimulus measures launched last year feeds through.
"As we look ahead to 2021, there is broad consensus among our fund managers and economists that China's recovery in growth will continue," Schroders's Emerging Markets Investment Specialist Andrew Rymer said.
Apart from Schroders, world asset management leaders such as BlackRock, Fidelity International have also applied to establish wholly-owned mutual fund units in China. Enditem