Deutsche Bank gains China domestic fund custody license
10 December 2020 China
Image: gui yong nian/Adobe Stock
Deutsche Bank China has received a domestic fund custody license from the China Securities Regulatory Commission (CSRC).
Upon completing the relevant administrative process, Deutsche Bank China will be able to directly provide custody-related solutions to funds established in China.
According to the Asset Management Association of China (AMAC), assets under management in China have reached RMB 56.17 trillion in the third quarter of 2020.
Data has also suggested that over 1,200 new mutual funds have been launched since this year, raising a record close to RMB 3 trillion.
In addition to the first wholly foreign owned mutual fund company approved by CSRC earlier this year, as of November, more than 30 wholly foreign-owned enterprises (WFOE) have successfully registered as private fund managers with AMAC.
Deutsche Bank noted that this demonstrates the increasing attractiveness of China’s domestic market.
Rose Zhu, Deutsche Bank China chief country officer, said: “This license comes at a time when many of our global institutional clients are actively exploring and acting on the unfolding opportunity to tap into the exponential China market, which is still fast growing and opening up. At the same time, the booming domestic fund industry is looking for global expertise to foster further development.”
Zhu continued: “This approval demonstrates Deutsche Bank’s role in helping to further open China’s financial market to the rest of the world. With the new license, we will extend our local services, and provide new opportunities to China’s fund management market by leveraging our global expertise.”
Anand Rengarajan, head of securities services, Asia Pacific at Deutsche Bank, said: “Deutsche Bank has a long-standing presence in the custody space, which is a core business of our corporate bank. We are proud to be able to leverage our expertise to help China’s fund managers with their local and overseas business and enhance products and services on the ground for our global clients.”
Deutsche Bank also recently announced it was set to launch an enhanced securities settlement service that proactively identifies in-flight security transactions at risk of settlement delay.
Upon completing the relevant administrative process, Deutsche Bank China will be able to directly provide custody-related solutions to funds established in China.
According to the Asset Management Association of China (AMAC), assets under management in China have reached RMB 56.17 trillion in the third quarter of 2020.
Data has also suggested that over 1,200 new mutual funds have been launched since this year, raising a record close to RMB 3 trillion.
In addition to the first wholly foreign owned mutual fund company approved by CSRC earlier this year, as of November, more than 30 wholly foreign-owned enterprises (WFOE) have successfully registered as private fund managers with AMAC.
Deutsche Bank noted that this demonstrates the increasing attractiveness of China’s domestic market.
Rose Zhu, Deutsche Bank China chief country officer, said: “This license comes at a time when many of our global institutional clients are actively exploring and acting on the unfolding opportunity to tap into the exponential China market, which is still fast growing and opening up. At the same time, the booming domestic fund industry is looking for global expertise to foster further development.”
Zhu continued: “This approval demonstrates Deutsche Bank’s role in helping to further open China’s financial market to the rest of the world. With the new license, we will extend our local services, and provide new opportunities to China’s fund management market by leveraging our global expertise.”
Anand Rengarajan, head of securities services, Asia Pacific at Deutsche Bank, said: “Deutsche Bank has a long-standing presence in the custody space, which is a core business of our corporate bank. We are proud to be able to leverage our expertise to help China’s fund managers with their local and overseas business and enhance products and services on the ground for our global clients.”
Deutsche Bank also recently announced it was set to launch an enhanced securities settlement service that proactively identifies in-flight security transactions at risk of settlement delay.
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