Fidelity already operates four privately managed funds in China targeting institutional clients and high net-worth individuals.
Fidelity International has become the third foreign institution to apply to the CSRC (China Securities Regulatory Commission) for approval to set up a wholly owned mutual fund subsidiary in China.
“The application for a mutual fund license is an important milestone in our China strategy,” said Fidelity International’s China president Daisy Ho in a statement.
In 2017, Fidelity became the first foreign institution approved to set up a wholly owned company (a WFOE) in China for privately offered funds. Currently, the firm operates four privately managed funds in China targeting institutional clients and high net-worth individuals.
Ho said Fidelity will continue to devote resources to expand its capabilities and develop more solutions to help Chinese investors achieve their investment and retirement goals. The firm currently employs around 1,300 staff in Beijing, Shanghai and Dalian.
The new approval, if granted, will allow Fidelity to also offer funds to China’s retail market.
The CSRC recently accepted applications from BlackRock and Neuberger Berman to set up wholly-owned mutual fund units in China, following the removal of foreign ownership restrictions in the mutual fund and securities industries on 1 April, as agreed in January’s interim Sino-US trade deal.
