One of world’s largest managers of mutual and index funds is betting on the Chinese mainland market while closing operations in Hong Kong and Japan, reported Caixin.
US asset manager Vanguard Group, which has about $6.2 trillion in assets under management, confirmed Wednesday that it will exit Hong Kong and Japan and move its Asian headquarters to Shanghai from Hong Kong. The fund giant’s spokesperson said the change would take between six months and two years.
Vanguard has a limited presence in Hong Kong, offering exchange-traded funds (ETFs), mandatory provident fund, which is a compulsory pension fund designed for the retirement of residents in Hong Kong, and index-tracking collective investment plans. The fund manager said it notified clients, regulators and other related parties of an orderly exit from these products.
“Our future focus in Asia is on the Chinese mainland,” Vanguard’s spokesperson told Caixin.