Neuberger Berman Group, an American asset manager, is the the third foreign company to gain access to China’s growing mutual fund market after the country’s securities regulator granted its application to operate a wholly-owned mutual fund business on the Chinese mainland, reports Caixin.
Neuberger Berman joins BlackRock, the world’s largest asset manager, and US asset manager Fidelity International in entering the sector and competing with more than 150 fund managers who had a combined RMB 23.5 trillion ($3.6 trillion) of assets under management through 8,400 mutual funds at the end of July, according to data from the Asset Management Association of China (AMAC).
Sales of new mutual funds amounted to RMB 1.6 trillion in the first six months of this year, a record high for the six-month period. Last year, mutual fund sales also hit a record of more than 3 trillion yuan. Beijing scrapped the limit on foreign ownership of mutual fund companies in April last year and applications from several other foreign asset managers, including Van Eck Associates and Schroders PLC, are going through regulatory reviews.