Chinese regulators over the weekend opened the door for foreign money managers to own controlling stakes in money management firms offering mutual funds to retail investors on the mainland.
Updated guidelines posted on the website of the China Securities Regulatory Commission on Saturday boosted the ceiling for foreign ownership of joint venture fund management companies to 51% from 49%.
That increase represents a significant step toward allowing foreign managers to access China's broader asset management market. Previous reforms over the past two years have allowed foreign firms to set up wholly foreign-owned investment management firms on the mainland licensed to manage money for local high-net-worth and institutional investors.
Analysts say the challenges of distributing funds to retail clients will ensure that forging partnerships and tie-ups with local financial institutions remains a crucial step in building business on the mainland.