(Yicai Global) Sept. 23 -- Vanguard Group, the world’s biggest mutual fund company, has taken a key step in promoting that business in China by appointing a former stock market regulator as general manager of its Shanghai-based unit.

Luo Dengpan was named as GM yesterday and will take up the position next month, Yicai Global has learned. He was a mid-level official at the China Securities Regulatory Commission between 2009 and 2012 and was GM of Dacheng Fund Management from 2014 to 2019.

Vanguard is preparing to apply for a mutual fund license, but the official timeline for submission of an application has not yet been forthcoming on the regulator’s website. The US financial giant lags behind foreign-funded rivals Neuberger Berman and Fidelity International, which have already submitted applications, and Blackrock, which won regulatory approval last month.

Unlike other foreign asset managers that apply for private fund manager qualifications after first breaking into the Chinese market, Vanguard is lodging its application directly.

Vanguard announced in December the setup of a joint venture with Chinese fintech giant Ant Group to provide low-cost smart financial advice to 900 million individuals on the Chinese mainland via Ant's platform. The JV had acquired as many as 200,000 customers as of July.

Some market participants see this is an important attempt by Vanguard to access everyday investors in the mainland and expand its customer base.

Vanguard managed USD5.7 trillion worth of assets worldwide as of the year's start, second only to Blackrock's USD7.32 trillion.

Editors: Tang Shihua, Ben Armour