(Yicai Global) Sept. 19 -- Fullerton Fund Management's wholly foreign-owned enterprise, Fullerton Investment Management (Shanghai) Co., has been granted 'Private Fund Management' (PFM) approval from the Asset Management Association of China (AMAC).

Mark Li, general manager of the Fullerton Investment Shanghai, told China Securities News that he begins a new journey in Shanghai carrying his "China dream" in China's asset management industry

There are many companies, like Li's, which hope to enter Chinese asset management industry through foreign private equity. They hope to seize a share in China's asset management market worth tens of trillions of yuan. Some foreign partners of Chinese-foreign joint venture fund companies intend to move from public offering funds to foreign private equity funds.

Fullerton Investment is not the first foreign-funded enterprise who obtained foreign private equity license in China. Fidelity Investments and United Bank of Switzerland (UBS) [VTX:UBSG] have been granted permission to set up their own private equity ventures.

Fullerton Investment's strategy is completely different from the two foreign private equity firms, Li said. The Singaporean Temasek Holdings' investment company first established its footprint in Chinese capital market from 2006 and is familiar with Chinese local investment culture, therefore, it clearly established its "localization" strategy and this is one major factor that attracts Li to join it.

The "localization strategy" does not simply mean that all the staff of the company should be Chinese, but in the business development and operations, Chinese staff do the business according to the local market rules and behavior and foreign parties provide sufficient trust and authorization, Li told China Securities News.

However, as the general manager of a foreign private equity firm, Li stressed that the business ideas of foreign private equity firms are different from those of domestic peers. They do not pay too much emphasis on short-term profits for explosive growth, but give more emphasis on long-term business sustainability and profitability, which also provides domestic investors with a new choice.

"Investors will find that there is a group of other investment managers on the market who are not so radical. They will do everything from the perspective of investors and are very rational in investment, emphasizing in-depth research and long-term tracking of the fundamentals of listed companies to uphold the long-term value investment. We believe that with the continuous improvement of China's capital market, more investors will favor us," Li added.