Key Takeaways
- • China's securities regulator approved Neuberger Berman Fund Management (China) Co for a Qualified Domestic Institutional Investor (QDII) licence, allowing it to help domestic clients invest overseas, according to Reuters.
- • Neuberger Berman (China) becomes the second wholly foreign-owned fund manager to receive a QDII licence, following BlackRock, which was granted one in September.
- • The approval, announced on Friday, is presented by Reuters as a sign that Beijing is broadening financial opening in the world's second-largest economy.
Summary
Beijing granted US asset manager Neuberger Berman's Chinese unit a Qualified Domestic Institutional Investor (QDII) licence on Friday, allowing the firm to help domestic clients invest overseas, according to Reuters. China's securities regulator confirmed in a notice that it had approved Neuberger Berman Fund Management (China) Co for the qualification.
The licence makes Neuberger Berman (China) the second wholly foreign-owned fund manager to obtain QDII status. BlackRock received a QDII licence from Beijing in September, and the two approvals together mark a gradual expansion of channels for foreign-controlled managers to participate in China's outbound investment framework.
The QDII regime allows licensed fund managers to pool money from domestic investors and deploy it into overseas markets, a mechanism China has used to manage capital flows while giving onshore savers access to global assets. Reuters characterized the approval as part of a broader signal from Beijing about financial opening. The primary report does not disclose the size of any initial quota, product plans or launch timing for Neuberger Berman's China unit.
For allocators tracking China's market access, the approval adds a second global asset manager with wholly foreign ownership to the QDII roster and indicates continued regulatory willingness to grant such licences to foreign-owned onshore managers.
The licence makes Neuberger Berman (China) the second wholly foreign-owned fund manager to obtain QDII status. BlackRock received a QDII licence from Beijing in September, and the two approvals together mark a gradual expansion of channels for foreign-controlled managers to participate in China's outbound investment framework.
The QDII regime allows licensed fund managers to pool money from domestic investors and deploy it into overseas markets, a mechanism China has used to manage capital flows while giving onshore savers access to global assets. Reuters characterized the approval as part of a broader signal from Beijing about financial opening. The primary report does not disclose the size of any initial quota, product plans or launch timing for Neuberger Berman's China unit.
For allocators tracking China's market access, the approval adds a second global asset manager with wholly foreign ownership to the QDII roster and indicates continued regulatory willingness to grant such licences to foreign-owned onshore managers.
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