New York-based VanEck is reportedly seeking a mutual fund license in China as part of a wave of asset managers seeking to capitalize on the mainland’s $2.6 trillion market.
VanEck had started planning for China entry last year, according to a «Reuters» report citing unnamed sources, but was hindered by the coronavirus outbreak.
It has been in contact with Chinese regulators in recent months but has yet to submit an application, the report added.
Product Strategy
Separately, VanEck is considering a product launch under the Qualified Domestic Limited Partnership (QDLP) – an outbound investment scheme for mainland Chinese to invest offshore. VanEck's QDLP plans will focus on showcasing its gold investment capabilities and tapping into mainland Chinese investor penchant for the asset class.
VanEck’s China product strategy and mutual fund plans have not been finalized, according to the report.
Thus far, BlackRock, Neuberger Berman and Fidelity International have applied to set up fully-owned mutual fund companies in China, while Vanguard Group and Schroders are expected to follow.
