Funds: Foreign managers upbeat

management industry to international players in 2016 by allowing them to set up wholly foreignowned enterprises to raise onshore funds and invest in the mainland’s securities market. Previously, they could only enter the market by owning a minority stake in a joint venture with a local Chinese partner.

Foreign fund managers have expressed great interest in raising onshore funds to invest in the Chinese interbank bond market, which is currently unavailable to them, as they see fixed-income products as an important asset class in their portfolios and a necessary tool to hedge against risks in the equities market for their clients.

Many of them have also been seeking regulatory approval to raise onshore funds and invest in overseas markets with a certain quota under the pilot program known as the Qualified Domestic Limited Partnership.

“The QDLP program has allowed us to further understand the risk preference of Chinese investors and the existing regulatory environment in China. We will continue to use our global advantage to create value for our Chinese clients,” BlackRock said in a written response to China Daily.

China suspended the program in 2015 as the country faced mounting pressure from capital outflows. But the renewed foreign interest indicates that the authorities may lift the suspension in the near future.

The recent market correction is not expected to detract from China’s effort to reform its capital market or boost the attractiveness of A-shares to domestic and foreign investors.

The Shenzhen Stock Exchange said on Friday in its 2018-20 development plan that it will reform the current listing requirements for its startup board and will make the exchange more inclusive for hightech and innovative companies.