Eastspring Investments, Prudential Plc’s Asian asset management business, said on Tuesday it had received a licence to set up a wholly-owned unit in China to manage non-retail funds in the world’s second-largest economy.
The company has also registered the private fund management unit with the Asset Management Association of China (AMAC), it said in a statement, a prerequisite before a foreign firm is allowed to raise capital in that country.
The fund management licence will allow Eastspring to offer wealthy individuals and institutional investors investment products covering equities, fixed income and multi-asset segments in the onshore market.
“Receiving our PFM licence allows us to accelerate our growth in this important market,” Nic Nicandrou, chief executive officer of Prudential’s Asia unit, said in the statement.
Eastspring already has a joint venture with CITIC Group that manages retail funds in China, which is expected by asset management research firm Cerulli Associates to account for 49 percent of Asia’s total funds under management by 2020.
Prudential, which in July this year agreed to buy 65 percent of TMB Asset Management from Thai bank TMB PCL as part of its push to grow its Asia fund business, also has a 50:50 life insurance business in China with CITIC.