Eastspring Investments, the Asian asset management unit of Prudential, has established an investment management wholly-foreign owned enterprise (IM WFOE) in Shanghai, China.
The launch of the IM WFOE is the prerequisite to start onshore investment management operations in China.
However, the move is subject to Eastspring receiving a private fund management (PFM) licence from the Asset Management Association of China (AMAC).
Commenting on the move, Eastspring CEO Guy Strapp said: “As a leading Asia-based asset manager, China represents a significant growth opportunity for us. Our IM WFOE will enable us to establish an on-the-ground presence in mainland China and complements our existing joint venture partnership with CITIC-Prudential Fund Management Company.”
Also, the firm appointed Michael Lu as the general manager designate for its new Shanghai subsidiary. He previously headed the China business of Dutch asset manager Robeco for a decade.
The firm also appointed Bernard Teo as the legal representative for the new unit.
Prudential Corporation Asia CEO Nic Nicandrou said: “China is an important market for Prudential and is central to our strategy for Asia. Its strong economic growth and wealth accumulation, offers an unprecedented opportunity for Eastspring to increase its participation in this growing mutual fund market.”