Tencent’s asset management business GaoTeng, which it runs in partnership with Hillhouse Capital Management, is about to open for business to mainland clients where it hopes to take advantage of Chinese investors looking to diversify.
GaoTeng, launched in Hong Kong last year, will offer its services to Chinese nationals with existing overseas assets, according to a statement seen by Bloomberg. The plan is to tap into a growing desire among China’s wealthy to spread risk outside of the Chinese economy, which has seen its stock markets and currency tumble in recent months.
“We will be better able to serve Chinese clients because we understand Chinese clients better,” said CEO Wayne Bi. “We will design a select number of high-quality products that make sense for Chinese investors, helping them cut through a market that can often be homogenous and confusing to new participants.”
GaoTeng has now received all the necessary licensing from Hong Kong’s securities regulator. Its first product to be launched will be a fixed-income fund open to individual investors.