Foreign giants rush to capital market: heavyweight player king of bonds enters

category:Finance
 Foreign giants rush to capital market: heavyweight player king of bonds enters


Chinas capital market is booming, and foreign giants are also speeding up the layout. On November 27, the China Securities Regulatory Commission (CSRC) released the feedback on the application documents for the establishment of lobrama and fidelity mutual fund management companies. The two institutions should implement the problems in the feedback one by one within 30 working days.

Not only does public offering attract foreign investment, but private placement is also a market for foreign investment. Lu Bomai, known as the father of mutual funds, has previously released a number of private equity products, which he said should be viewed from the perspective of global allocation.

The 11 new foreign private placements this year are Russell investment, Hongshou investment, William ONeill investment, Bauer Sega, Mindray investment, parkey investment, Shouyi investment, oak capital, Hanhua investment, pinhao investment and Runhui investment. Up to now, a total of 33 securities foreign private placements have been filed.

Challenges of foreign giants

As the cross-border investment scope of qdlp (qualified domestic limited partner) involves securities and other fields, PIMCOs filing type is other types of private investment fund managers, which also means that Chinas fixed income market may meet the challenge of foreign giants.

According to tianyancha apps industrial and commercial information, pinhao overseas investment fund management (Shanghai) Co., Ltd. has a registered capital of US $2.5 million and a paid in capital of US $2 million, with a management scale of 0-100 million. It is 100% controlled by PIMCO Asia Limited. To be entrusted to manage the investment business of overseas investment funds and provide relevant services and investment consultation.

PIMCO, headquartered in the United States, was acquired by Allianz Group in 2000. As of the end of the third quarter, the total management scale of PIMCO exceeded 2 trillion US dollars.

China China novel coronavirus pneumonia is very optimistic about the future of Chinas financial market. In the latest strategy report, the New Asias economic recovery is faster than that of Europe and America, and Chinas recovery is more robust. PIMCO has increased its holdings of Asian related assets at the time of the latest strategic report. PIMCO

Despite the outbreak of the epidemic, the enthusiasm of foreign investment has not decreased. Since this year, a total of 11 foreign private equity companies have completed the filing. Affected by the epidemic situation in the first half of the year, only three foreign private placement companies completed the filing. Since the second quarter, foreign investors have been making efforts to apply for filing and issuing products. From the perspective of the registered place of foreign private placement, more than 90% of foreign private equity companies choose Shanghai as the international financial center.

Cheng Wanfang, a researcher at the Beijing Institute of understanding, told the Chinese times that foreign private placement abides by the company law in corporate governance, has a sound system and standardized process in corporate management. In terms of risk control system, it is more rigorous and abide by the legal system, which is the advantage of foreign private placement.

But on the other hand, foreign manpower costs are high. In the face of the trust problem between shareholders and management team, if the management team generally adopts foreigners, whether it can quickly adapt to the business culture of Chinese enterprises remains to be seen. At the same time, in terms of global asset allocation, foreign private placement has relatively strong advantages. This is the area where local private placement needs to improve learning.

Among the 33 foreign private equity companies in total, UBS asset management (Shanghai) Co., Ltd. has the most active product record, with a management scale of 2-5 billion yuan. This year, seven new products, including UBS China Yufeng bond strategy No. 5 and UBS China Ruixiang stock strategy No. 1, have been issued. At present, a total of 16 products have been put on record, which is the most registered product in foreign private placement.

Since the beginning of 2019, lobrama investment and Fulton investment have officially obtained the qualification to carry out investment proposal service in China, becoming the first batch of foreign-funded institutions to obtain investment advisory qualification. After that, lubumai investment began to make efforts on investment advisory products. On January 15, 2020, the galaxy capital lubumai Xinhuai No. 1 collective asset management plan was put on record. The type of the fund was a special account of the fund, and the management type was advisory management. Now foreign capital can enter Chinas capital market smoothly, and the relaxation of policies has also played a certain role. In order to actively and steadily promote the opening up of the private fund field, CFA launched four supporting measures in 2019: making clear that the actual controller of foreign private placement can be an overseas institution under the supervision of overseas financial regulatory authorities; defining the standards for foreign private equity fund investment to participate in the inter-bank bond market; offering English qualification examination for foreign executives and investment managers of foreign private placement; and liberalizing Restrictions on foreign private placement products participating in Hong Kong stock connect transactions. Source: China Times editor in charge: Yang Bin_ NF4368

Since the beginning of 2019, lobrama investment and Fulton investment have officially obtained the qualification to carry out investment proposal service in China, becoming the first batch of foreign-funded institutions to obtain investment advisory qualification. After that, lubumai investment began to make efforts on investment advisory products. On January 15, 2020, the galaxy capital lubumai Xinhuai No. 1 collective asset management plan was put on record. The type of the fund was a special account of the fund, and the management type was advisory management.

Now foreign capital can enter Chinas capital market smoothly, and the relaxation of policies has also played a certain role. In order to actively and steadily promote the opening up of the private fund field, CFA launched four supporting measures in 2019: making clear that the actual controller of foreign private placement can be an overseas institution under the supervision of overseas financial regulatory authorities; defining the standards for foreign private equity fund investment to participate in the inter-bank bond market; offering English qualification examination for foreign executives and investment managers of foreign private placement; and liberalizing Restrictions on foreign private placement products participating in Hong Kong stock connect transactions.