AllianzGI wins nod for China fund firm

Allianz Global Investors is looking forward to tapping China’s “vast potential and steady growth” after getting the green light to operate an onshore fund management company in the country, according to its regional head.

The fund manager received its licence yesterday after obtaining approval from the China Securities Regulatory Commission in August last year to establish a wholly foreign-owned public fund management company, with registered capital of 300 million yuan (HK$324 million).

“China presents unparalleled opportunities for us to serve our clients and investors as it accelerates the opening of its capital markets,” said Desmond Ng, head of Asia-Pacific at AllianzGI.

The granting of the licence comes hot on the heels of German Chancellor Olaf Scholz’s threeday visit to China, during which he lobbied President Xi Jinping to improve market access for German companies.

It also comes amid a monthslong effort by China to boost foreign investors’ confidence in a bid to rescue the country’s sluggish post-Covid economy.

China’s cabinet, the State Council, issued an action plan last month to attract foreign investment, with measures including the expansion of investment access in financial and hi-tech sectors, the promotion of fair competition, and the alignment of domestic rules with high-level international trade rules.

Setting up its local public fund management business will allow AllianzGI to serve the growing population of retail investors in China, according to CEO Tobias Pross.

China’s trillion-dollar mutual fund market was poised for strong growth, thanks to the country’s ageing demographic, rising household incomes, and ongoing pension reforms, he said.