The China Securities Regulatory Commission (CSRC) has approved Schroder Investment Management to establish a wholly foreign-owned public fund management company (FMC) in mainland China.

The fund targets to serve onshore investors as Beijing accelerates opening up its giant financial sector to foreigners. Schroders also obtained permission to establish a wealth management joint venture with BOCOM.

China scrapped foreign ownership caps in its US$3.7 trillion mutual fund industry in 2019, and BlackRock become the first foreign asset manager to open a fully-owned retail fund business in the country.