HONG KONG (Reuters) - U.S.-based AllianceBernstein (NYSE:AB) Holding LP has obtained a license to run its wholly-owned mutual fund business in China, the company said on Tuesday, making it the latest foreign asset manager to tap China's $3.8 trillion mutual fund market.
"AllianceBernstein will offer Chinese investors onshore investment products and solutions, and help them explore opportunities in China's domestic market," the company said in a statement posted on its WeChat account.
China in 2020 removed foreign ownership caps in its mutual fund industry. BlackRock (NYSE:BLK), Fidelity International Ltd and Neuberger Berman Group have secured approvals to run wholly-owned mutual fund businesses in China in recent years.
Morgan Stanley and JPMorgan Chase & Co. (NYSE:JPM) also won full control of their mutual fund joint ventures last year.
China's mutual fund industry is facing some headwinds as the market posted a loss for the third straight year in 2023, while foreign players are also grappling with other thorny issues including the tightening of the nation's data security and geopolitical risks.
American investment manager Van Eck last year terminated a plan to establish a Chinese mutual fund unit after obtaining approval due to business uncertainties.
($1 = 7.1252 Chinese yuan renminbi)