China asset managers signal London expansion as governments meet

Reuters: GF Fund Management has become the first Chinese investment manager to expand into Europe, opening a London office as it seeks to boost two-way investment flows with the world’s second-biggest economy.

GF International Asset Management, a GFFM subsidiary and part of GF Securities, said in a statement it would provide investment products based around Chinese assets and advise global institutions on accessing quotas to trade directly in Chinese markets.

The announcement of the move coincides with this week’s visit of Chinese premier Xi Jinping to Britain to deepen economic ties between the two countries as China looks to further liberalise its financial markets.

“Our company’s establishment in the UK bridges investment management between China and Europe. The strong growth of the Chinese economy presents exciting prospects for European clients,” said Chuanhui Lin, chief executive of GF Fund Management, one of China’s 10-biggest fund managers, with assets under management of $48 billion.

“Additionally, as Chinese investors become more sophisticated, their need for global diversification is increasing. We are entering a golden era in China-UK relations, making GF International well-positioned for success,” he said.

The news follows the signing of a memorandum of understanding between the fund industry trade bodies of both countries earlier this year aimed at boosting industry ties.

London is also seeking to cement its position as the largest offshore hub after Hong Kong for reinvesting in China’s mainland markets using yuan.

Meanwhile Nord Engine Asset Management, an asset management company based in Shanghai, said on Monday it was investing an undisclosed amount in UK-based investment platform DealGlobe.

Established in London in early 2014 with financial support from the UK government, DealGlobe is designed to help Chinese companies invest in overseas markets, primarily in the UK and continental Europe.

“Nord Engine has established a fund in the UK to invest in SMEs in Europe and we see great opportunities and potential in the China-EU market,” said Zhu Yang, chairman of Nord Engine Asset Management Group, which was founded in 2008 and specialises in investing in equities, funds of funds, fixed income and property assets.

(Reporting by Simon Jessop; Editing by Greg Mahlich)