AllianzGI seeks approval to enter China’s fund management market

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28th March 2023 – (Beijing) Allianz Global Investors (AllianzGI), the asset management arm of German financial group Allianz, has filed an application to expand its business in China’s fund management market. The application, submitted on Friday last week, was made to the China Securities Regulatory Commission (CSRC) and became available to the public on Monday evening.

According to a statement from a spokesperson for AllianzGI, the application “further demonstrates the firm’s commitment in China and its dedication to develop the onshore fund management business in this important market”. Last August, Reuters reported that AllianzGI was planning to form a fully owned fund management business in China, joining other global asset managers such as BlackRock, Fidelity International, and Schroders.

The move marks AllianzGI’s return to China’s mutual fund business after exiting from a Sino-foreign joint venture it formed in 2003. The German insurance group has recognised the potential of the fast-growing segment of China’s onshore financial market, which is worth $3.95 trillion, making it the second-largest economy in the world.

The attraction of China’s onshore financial market to global asset managers is due to its significant growth potential. The country’s economy is rapidly expanding, and its middle class is expected to grow to 600 million by 2023. This demographic shift presents an enormous opportunity for asset managers to expand their businesses.

In recent years, global asset managers have been establishing wholly-owned fund units locally in China, seeking to tap into the country’s lucrative financial market. The CSRC has been approving new foreign applications since 2019, when China lifted its restrictions on foreign ownership limits in the mutual fund market.

AllianzGI’s application is subject to approval by the CSRC, and it is unclear when the decision will be made. However, if approved, AllianzGI would be the latest foreign asset manager to enter China’s fund management market, further strengthening its position in the country’s financial market.