Fidelity Worldwide Investment announced it has established a wholly foreign-owned enterprise in Shanghai to “facilitate future expansion plans in the world's second-largest economy.”
A spokeswoman said the wholly foreign-owned enterprise leaves the firm better positioned to take advantage of continued regulatory reforms in the country. Mark Talbot, the firm's Hong Kong-based managing director, Asia-Pacific ex-Japan, said in a statement that a WFOE could open the door for Fidelity to offer domestic investment capabilities to local institutional investors the firm already serves for their offshore investment needs.
Brian Conroy, president, financial services, said in the same statement that the WFOE will complement Fidelity's existing operations in China; the equity and bond analysts at its representative office in Shanghai; the client-facing staff at its representative office in Beijing; and its more than 350-strong operations staff based in Dalian, China.
Mr. Talbot said a wholly foreign-owned enterprise “provides us with another channel should we gain approval to offer additional capabilities in the future.” Mr. Talbot couldn't immediately be reached for further comment.
