Source: Shanghai Securities News WeChat
Following BlackRock and Fidelity Fund, another wholly foreign-owned fund company was approved.
The latest announcement by the Csrc (CSRC) discloses that it has approved the establishment of Neuberger Berman Fund Management (China) Limited. So far, the three major asset management giants in the United States have successfully gathered in China's public offering market.
The third wholly foreign-owned public offering was approved
According to the website of the China Securities Regulatory Commission, the establishment of NeubergerMan Fund Management (China) Co., Ltd., registered in Shanghai, with a registered capital of 150 million yuan, was approved, and was wholly owned by Neubergerman Investment Consulting Co., Ltd.
According to the data, Neuberger Berman is an established international asset management company. In 1939, Roy R. Neuberger, known as the "father of american mutual funds," co-founded Neuberger and Robert Berman. Neuberger worked at Neuberger for 60 years until his official retirement after the company went public in 1999. In 2003, Lehman Brothers acquired Neuberger Berman for $2.63 billion. After lehman's bankruptcy, Neuberger Berman was delisted through an employee-initiated share acquisition program to become an independent company that continues to this day. As of June 30, 2021, Neuberger Berman had more than $433 billion in assets under management.
In fact, Neuberger Berman entered the Chinese market as early as 2008. In 2016, Neuberger Berman Investment Management (Shanghai) Co., Ltd. was incorporated as a WFOE in the Shanghai Free Trade Zone. The company was registered as a private equity fund manager in the Asset Management Association of China in 2017, and in 2018, it was supported by the Shanghai Financial Affairs Office to become a pilot institution for QDLP business and set up an overseas investment fund management subsidiary.
Song Liu, President of Neuberger Berman China, joined Berberman in 2017. Prior to joining Neuberger Berman, he was The General Manager of Hi-Futong Fund Management Limited, a joint venture between BNP Paribas Investments and Haitong Securities. Previously, he was Head of Greater China at Deutsche Asset Management, where he was responsible for expanding the region's business.
With the acceleration of the opening up of China's capital market to the outside world, overseas asset management giants have followed.
From April 1, 2020, China's public funds officially lifted the restrictions on foreign equity ratios. Since then, overseas asset management giants such as BlackRock, Neuberger Man, Fidelity International, Fanda Group, Schroeder and Lianbo have successively submitted public offering license applications to the China Securities Regulatory Commission.
In August 2020, BlackRock Fund Management Co., Ltd. was officially approved, and the company also became the first wholly foreign-owned public fund company approved for establishment in China. On August 5 this year, Fidelity, which has been deeply involved in the Chinese market for many years, won its second wholly foreign-owned public offering license.
Optimistic about the potential of the Chinese market
Liu Song said that becoming one of the first foreign public funds to do business in China is a milestone in Neuberger Berman's business expansion in China, which is a new starting point for China's business, and the public fund can serve more Chinese investors, meet their diversified investment needs, and help global investors further explore the value of the Chinese market.
Liu Song once said at the "2020 Shanghai Securities News Asset Management Summit Forum" that as the world's second largest economy, the investment opportunities in the Chinese market cannot be ignored by any global asset management company. Both from the perspective of market capacity and investment opportunities, the Chinese market has increasing potential to become an asset class independent of emerging markets.
For the current A-share market situation, Zhou Ping, quantitative investment director of Neuberger Berman China, said that the recent market style rotation has accelerated significantly, whether from the perspective of style factors or the concept plate, the continuity of the market is relatively weak and volatile. This shows that the market divergence is large, and short-term funds dominate the market. In this market environment, investors should downplay their focus on short-term performance and focus on finding high-quality companies that have been temporarily overlooked by the market.
"From the perspective of quantitative investment, the quality factor has fallen sharply this year. This is both a return to the sharp rise in the quality factor over the past two years and a sign that the high-quality white horse stocks that have fallen sharply in the previous period have become attractive again. In addition, some small and medium-cap stocks represented by specialized new enterprises have not received enough attention, but their valuations are reasonable, profitability is strong, future growth can be expected, and they have high investment value. Zhou Ping said.