The China Securities Regulatory Commission (CSRC) announced last Thursday that it had approved Standard Chartered's application for providing mutual fund trusteeship service in China, making the British banking giant the first overseas bank to obtain the qualification, the Securities Times reported on Sunday.
Standard Chartered submitted its application in July, four months after the then China Banking Regulatory Commission (CBRC) removed the approval requirement for overseas banks to provide a number of services including mutual fund trusteeship in China.
The entry of Standard Chartered might herald possible changes to the landscape of China's mutual fund trusteeship market which was worth up to 13.16 trillion yuan (1.89 trillion U.S. dollars) by the end of the third quarter of this year and is currently dominated by domestic players.
Data from the CSRC shows that at present, there are 43 mutual fund trustees in China, all of which are domestic financial institutions, with the Industrial and Commercial Bank of China (ICBC) holding the lion's share of the market.
Compared with domestic banks, overseas banks' much smaller branch networks in China put them at a disadvantage in attracting mutual fund companies which tend to choose banks with strong marketing capability as trustees for their fund products.
Still, mutual fund managers say overseas banks' strength lies in the high quality of their client base as many high net worth individuals become the clients of these banks.
Standard Chartered's business operation in China dates back to 1858 when its first Chinese branch office was opened in Shanghai. So far, the bank has a network of over 100 branch offices in nearly 30 Chinese cities.
The bank generated a total of 5.36 billion yuan (about 771 million U.S. dollars) in revenue in China last year, a year-on-year growth of 4.2 percent. Its profit jumped by as much as 176 percent to reach 1.75 billion yuan (about 252 million U.S. dollars) in 2017.
Standard Chartered submitted its application in July, four months after the then China Banking Regulatory Commission (CBRC) removed the approval requirement for overseas banks to provide a number of services including mutual fund trusteeship in China.
The entry of Standard Chartered might herald possible changes to the landscape of China's mutual fund trusteeship market which was worth up to 13.16 trillion yuan (1.89 trillion U.S. dollars) by the end of the third quarter of this year and is currently dominated by domestic players.
Data from the CSRC shows that at present, there are 43 mutual fund trustees in China, all of which are domestic financial institutions, with the Industrial and Commercial Bank of China (ICBC) holding the lion's share of the market.
Compared with domestic banks, overseas banks' much smaller branch networks in China put them at a disadvantage in attracting mutual fund companies which tend to choose banks with strong marketing capability as trustees for their fund products.
Still, mutual fund managers say overseas banks' strength lies in the high quality of their client base as many high net worth individuals become the clients of these banks.
Standard Chartered's business operation in China dates back to 1858 when its first Chinese branch office was opened in Shanghai. So far, the bank has a network of over 100 branch offices in nearly 30 Chinese cities.
The bank generated a total of 5.36 billion yuan (about 771 million U.S. dollars) in revenue in China last year, a year-on-year growth of 4.2 percent. Its profit jumped by as much as 176 percent to reach 1.75 billion yuan (about 252 million U.S. dollars) in 2017.
Latest comments