Global asset management giant Fidelity Internationalhas applied to set up a wholly owned mutual fund subsidiary in China, making the firm the third foreign institution to do so after BlackRock Inc. and Neuberger Berman Group LLC, as access to the country’s lucrative fund market has widened, reported Caixin.
Fidelity said in a Tuesday statement that it has submitted the application to the China Securities Regulatory Commission (CSRC), the country’s top securities regulator.
“The application for a mutual fund license is an important milestone in our China strategy,” Daisy Ho, Fidelity International’s China president, said in the statement. She said the company “will continue to devote resources to expand our capabilities and develop more solutions based on Chinese investors’ needs to help them achieve their investment and retirement goals.”
If Fidelity is granted the license, it will be able to sell investment products to individual customers across China. The asset manager currently operates four privately managed funds in China, which target mostly institutional clients and a limited number of wealthy individual investors. In 2017, Fidelity became the first foreign institution to set up a wholly owned privately offered fund company in China after obtaining regulatory approval.