Despite the latest Covid-19 epidemic in the financial hub, some global asset management institutions joined Shanghai’s cross-border investment schemes, and some others upped their quotas
The Shanghai government has sped up to approve applications from global asset management firms to participate in cross-border investment projects and has been hiking their quotas despite the latest Covid-19 surge in the city.
Applications to participate in the Qualified Foreign Limited Partnership (QFLP) scheme, where foreign capital can be converted into Chinese yuan for investment in the domestic capital markets, and the Qualified Domestic Limited Partnership (QDLP) program, where Chinese funds invest in overseas markets, have continued to accelerate.
According to local financial bureaus, US investment manager Hamilton Lane, Chinese asset management firms CCB International, CDH Investments, and JAFCO Asia II were approved to participate in QFLP trials. The US investment giant BlackRock and Anzhong Investment Management, a wholly-owned subsidiary of Italian asset management firm Azimut, were authorized to join QDLP pilots.
Other global asset managers expanded their quotas. Switzerland’s Credit Suisse and the US’s Pacific Investment Management were granted another USD 200 million in QDLP quotas each, increasing its total to USD 400 million, respectively. The US’ UBP Investment Management was approved to have an extra QDLP quota of USD 100 million, making a total quota of USD 150 million.
Heiner China Shanghai Equity Investment Fund Partnership was authorized to add USD 70 million to its QFLP quota, bringing the total to USD 700 million. Shanghai Xinjing Equity Investment Partnership increased its QFLP quota by USD 500 million to a total of USD 1 billion.
Other institutions including the US’ Neuberger Berman and Oaktree Capital Management are also planning to up their quotas, expanding their asset management businesses in Shanghai.