The world’s biggest asset manager- BlackRock, received approval for a partnership with a state-owned bank in China last month. Same move did rival asset manager- Vanguard, announcing relocation of its regional headquarters to Shanghai, while Citigroup became the first US bank to receive a fund custody licence in the country. Details have also emerged of JPMorgan Chase’s plan to buy out its local partner in a Chinese funds business.
According to the announcement of Stewart Aldcroft, Asia chairman of Cititrust, an arm of Citigroup: “Everywhere you look (in China), there’s a lot of money, and where else in the world is there an opportunity like this to go and get that sort of money for management? There isn’t anywhere, frankly”.
Well known investing bank, also Morgan Stanley received approval to take majority ownership of its China securities joint venture In March. JPMorgan was recently permitted to become the first foreign bank to fully own a futures business in China, on top of taking control of its Chinese mutual fund business through its asset management arm.