China opening up to private management services?

Bank of Communications Schroder Fund Management, the Schroders China fund joint venture, said it signed an agreement with a private Shanghai enterprise to manage close to 100 mln yuan worth of assets.

The private-wealth account is the first to be managed by an asset management firm in China.
The joint venture did not name the private enterprise.

The announcement follows the launch by the China Securities Regulatory Commission (CSRC) of new rules from January 1 this year allowing fund management companies to provide wealth management services to institutional investors.

The funds were also allowed to offer services to individual clients who can invest at least 50 mln yuan.

Bank of Communications Schroder Fund Management won approval to offer such services on Feb 26.

So far, the CSRC has given permission to a total of 23 Chinese mutual fund companies to offer private wealth management services, allowing them to invest in stocks, bonds, stock funds, central bank bills, short-term debt, asset-backed securities and other regulated products.

Will more firms be given permission to offer such services in the short term?