AllianceBernstein obtains China mutual fund business license

Alliancebernstein Holding LP

02/01/2024 05:44

HONG KONG, Jan 2 (Reuters) - U.S.-based
AllianceBernstein Holding LP  AB.N  has obtained a license to
run its wholly-owned mutual fund business in China, the company
said on Tuesday, making it the latest foreign asset manager to
tap China's $3.8 trillion mutual fund market. 
    "AllianceBernstein will offer Chinese investors onshore
investment products and solutions, and help them explore
opportunities in China's domestic market," the company said in a
statement posted on its WeChat account.
    China in 2020 removed foreign ownership caps in its mutual
fund industry. BlackRock  BLK.N , Fidelity International Ltd and
Neuberger Berman Group have secured approvals to run
wholly-owned mutual fund businesses in China in recent years. 
    Morgan Stanley  MS.N  and JPMorgan Chase & Co.  JPM.N  also
won full control of their mutual fund joint ventures last year.
    China's mutual fund industry is facing some headwinds as the
market posted a loss for the third straight year in 2023, while
foreign players are also grappling with other thorny issues
including the tightening of the nation's data security and
geopolitical risks. 
    American investment manager Van Eck last year terminated a
plan to establish a Chinese mutual fund unit after obtaining
approval due to business uncertainties.
    ($1 = 7.1252 Chinese yuan renminbi)

 (Reporting by Xie Yu
Editing by Shri Navaratnam)
 ((Yu.Xie@thomsonreuters.com;))