(Yicai Global) Sept. 22 -- The Asset Management Association of Shanghai was established yesterday with a membership of 123 companies including trust firms, insurance asset management companies and public funds, and is a significant step in speeding up the transformation of Shanghai into an international asset management center.
The association is an important institution in building a local asset management industrial ecosystem and satisfies an internal need for the sector’s high-quality development, Jin Penghui, deputy director of the Shanghai headquarters of the People’s Bank of China and head of its Shanghai branch, said at the inaugural meeting.
The association will serve as a bridge of communication between regulators and industry players, between asset managers, as well as from the asset side to the capital side, Jia Biao, president of China Insurance Investment, told Yicai Global. The establishment of the association is of great significance for Shanghai to become a global asset management center.
A trial program for the cross-border transfer of private equity and venture capital shares was initiated by the association at its launch. This provides a new outbound channel for private equity and venture capital funds and is a very important development, said Zhang Yunfeng, general manager of the Shanghai Equity Exchange.
The lack of exit channels has greatly hindered the development of private equity investment and venture capital funds, which mainly provide financing services for technological startups, Zhang added. The pilot transfer scheme will be conducive to activating the effective flow of science and technology innovation capital.
Shanghai is home to more than 4,600 asset managers, including many overseas ones. Three wholly foreign-owned public funds, four joint-venture bank wealth management companies and the country’s first joint-venture fund investment adviser have all settled in Shanghai, said Xie Dong, director of the Shanghai Municipal Financial Regulatory Bureau.
Editors: Tang Shihua, Kim Taylor