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posted by on Sunday January 08 2017, @01:03AM   Printer-friendly
from the if-it-makes-money-we'll-do-it dept.

Foreign firms can now launch wholly-owned investment funds in China:

China has opened the way for foreign asset managers to begin launching private investment funds in the country through local subsidiaries, by publishing long-awaited registration rules for such investments. The step removes a key technical hurdle to foreign entry 1-1/2 years after China agreed to deregulate its private fund market as part of commitments made during the U.S.-China 8th Strategic and Economic Dialogue in June, 2015.

[...] However, foreign asset managers will only be permitted to trade via China-based systems and as long as their onshore and offshore businesses are separate. In the mutual fund space, foreigners will still need to operate through minority-owned ventures with Chinese partners. The new rules came two days after Fidelity International became the first global asset manager allowed to launch investment products in China through a wholly-owned local subsidiary, after registering with [the Asset Management Association of China (AMAC)].

From an earlier story about Fidelity:

Since 2004, Fidelity has been offering offshore capabilities to Chinese investors through partnering with banks under the Qualified Domestic Institutional Investor (QDII) scheme, and "this latest development expands our capabilities to support Chinese clients' needs to invest both onshore and offshore." Fidelity also owns a quota of $1.2 billion under the Qualified Foreign Institutional Investor (QFII) scheme, which allows foreign institutions to buy Chinese stocks and bonds.


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  • (Score: 1, Funny) by Anonymous Coward on Sunday January 08 2017, @02:51AM

    by Anonymous Coward on Sunday January 08 2017, @02:51AM (#450921)

    How do you say Wall Street in the various popular Chinese dialects?

  • (Score: 0) by Anonymous Coward on Sunday January 08 2017, @02:53AM

    by Anonymous Coward on Sunday January 08 2017, @02:53AM (#450923)

    Send it to China.

    • (Score: 0) by Anonymous Coward on Sunday January 08 2017, @04:03AM

      by Anonymous Coward on Sunday January 08 2017, @04:03AM (#450936)

      I've heard that the Chinese are historically, very prone to gambling addiction? Plenty of hits on related searches, for example,
          http://www.afr.com/markets/equity-markets/chinas-new-gambling-addiction-20150701-gi2pbt [afr.com]
      Wall Street companies should clean up.

      • (Score: 0) by Anonymous Coward on Monday January 09 2017, @11:33PM

        by Anonymous Coward on Monday January 09 2017, @11:33PM (#451742)

        I have heard the same regarding Vietnamese, Korean, Laos, Thai, Hmong, Mien, and probably a dozen other asian minorities I can't remember the names of.

        The exact reasons vary, but a lot of it is related to superstitions around fortune. I imagine if you looked at the population of non-Asian americans who gambled or were gambling addicted, you would see a signficiant percent of them are also superstitious or addicted to some form of fortune telling/seeking.

  • (Score: 4, Interesting) by iamjacksusername on Sunday January 08 2017, @02:56PM

    by iamjacksusername (1479) on Sunday January 08 2017, @02:56PM (#451032)

    China is desperate for dollar-denominated capital. Rich Chinese have spent the past 10 years converting their assets to dollars and moving them out of China as fast as possible because they know their assets are only protected to the next bribe. This is why western urban centers have apartments and condos being built at incredible rates but not being occupied. They are owned by Chinese who want their assets protected by Western legal systems. The Chinese government severely restricts capital outflows from the mainland. Until a year or so ago, VISA bills were exempt from these restrictions so you had things like Chinese billionaires buying $200 million in art or cars or whatever and paying for it on VISA. The point was to get the money out of the reach of the mainland government.

    Now, the Chinese Central Bank is hard up for dollars. They have a massive housing bubble, paid for with mountains of bad debt. They are already bailing out their banks by printing huge amounts of new money; this is what the Fed did it bail out the banks. However, the difference between the Fed doing it and China doing it is that the Yuan is not a world reserve rurrency with the whole world willing to absorb the inflationary impact of the printing trillions in new money. China needs dollars to hedge the inflationary impact of carpet bombing their economy with money.

    Again, the whole point is to get dollars into China when every mainlander who knows better has taken every dollar they could out of the country. They knew this was coming and prepared. To advise caution would be an understatement.