Vanguard has halted plans to obtain a fund management licence in China just months after moving its main Asia office to Shanghai, as the US group’s low-cost model hit speed bumps in a fast-growing market.
The world’s second-largest asset manager said on Tuesday it was “pausing” its application for a licence. Vanguard added that it would instead focus on its investment advisory partnership with Ant Group, the Chinese payments business controlled by billionaire Jack Ma.
The move comes after a rush of interest in China’s fast-growing mutual fund industry from some of the world’s biggest investors. Vanguard competitors, including BlackRock and JPMorgan Asset Management, have expanded their presence in the country in recent months.
“We greatly appreciated the opportunity to tender an application for an FMC license and are glad to see China welcoming international global asset managers to participate directly in the retail funds market servicing Chinese…
