SHANGHAI: Shanghai authorities granted a joint venture involving JPMorgan the right to raise funds in China to invest in overseas assets, a spokesman for the US firm said on Wednesday.
China International Fund Management Co (CIFM), a venture between J.P. Morgan Asset Management Ltd and state-owned Shanghai International Trust Co, received approval to raise US$100mil, making it the first domestic mutual fund to gain qualified domestic limited partner (QDLP) status.
The new licence is the latest move by the Chinese government to internationalise its currency and expand the use of its US$3.73 trillion foreign reserves.
The asset manager's first QDLP product is nearly ready and will be invested in an overseas hedge fund which has a 20-year history, said the spokesman, without giving further details.
Earlier this year, Shanghai granted five foreign fund managers, including UBS Global Asset Management, Deutsche Asset & Wealth Management and Nomura Asset Management, foreign exchange quotas of US$100mil under the QDLP scheme, aimed at opening China to the US$2 trillion-plus global hedge fund industry, sources told Reuters.
QDLP, which was launched in 2013, allows global fund managers to bring together domestic investors in limited partnerships that buy offshore alternative assets. - Reuters
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