China has published rules allowing foreign private fund companies to sell products in the country and invest funds received in the A-share market, Caixin reports. This paves the way for foreign fund companies to tap China’s growing demand for wealth management services by broadening the scope of securities they can buy for clients to include those issued and traded on the Shanghai and Shenzhen stock exchanges. Previously, foreign fund companies permitted to raise funds in China could only make investment overseas. This limited the competition Chinese fund managers faced. Under the rules, foreign-invested firms conducting investment business in China are prohibited from placing orders through institutions or systems outside the mainland. They must keep full records of all transactions, separate their investments in China from those in foreign markets, and comply with the Chinese government’s foreign-exchange regulations.
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