Schroders to break down Chinese walls
UK/CHINA – UK investment management group Schroders is to forge a strategic partnership with China Galaxy Securities Company in a bid to further develop its fund management business in mainland China.
The two groups have signed a memorandum of understanding, which outlines co-operation in areas including investment management, risk management, client servicing and sales.
The companies are also planning to establish a joint venture fund management company in mainland China and to submit a proposal to the Chinese regulator seeking a licence to operate as a Sino-foreign equity fund manager.
David Salisbury, chief executive of Schroders, comments: “We are of the view that China has the potential to establish one of the largest fund management industries in the world in the years to come. China is rapidly opening up its financial markets to investors and we expect this to accelerate following its accession to the WTO. This strategic partnership will enable us to access this high-growth market.”
Staff training, design and research of financial products and marketing in China will also be done on a joint basis.