Despite COVID-19 surges and mounting downward pressure on the economy, several global financial institutions have increased their presence or plan to do so in the Chinese market, expressing a vote of confidence in the prospects of the world’s second-largest economy. .
Six asset management firms recently got the go-ahead to join Qualified Foreign Limited Partner (QFLP) or Qualified Domestic Limited Partner (QDLP), two pilot programs offering easier access to Chinese fund markets.
After approval, Hamilton Lane, a leading private market investment firm, will become the first to set up a secondary fund under the QFLP program in Shanghai, and BlackRock, the world’s largest asset manager , will become the first wholly foreign-owned company. public offering funds participating in the QDLP program.
Hu Ning, managing partner of CDH Investments, a global investment firm also on the list, said the firm was optimistic about long-term investment of US-dollar funds in China and was attracted by the policies of China. high-level opening of Shanghai.
“Chinese assets can not only achieve steady growth through the domestic real economy, but gradually play the role of safe-haven assets in global markets,” Hu said.
Founded in 2002, CDH Investments focuses on long-term investments such as pensions, endowments and insurance funds.
The expanded investment programs in Shanghai signaled an unchanged trend to invest in China, as continued global uncertainty and volatility further underscored the country’s importance to businesses around the world.
Braving economic headwinds, China’s gross domestic product recorded a 4.8% increase from a year ago in the first quarter of this year, providing valuable stability in a volatile world.
The country also remains committed to opening up. This year, its renewed efforts range from fully implementing the negative list for foreign investment, expanding the investment incentive catalog, improving investment promotion services, adding more cities in the service sector opening pilot program.
The stable and open China has attracted a number of international companies to channel more energy into their business here.
Pan Swee-ting, JAFCO Asia’s China manager, looks forward to more opportunities in China’s transition to high-quality development in the future after miraculous economic growth over the past four decades. The financial company recently increased its investment quota under the QFLP program.
“Over the past two years, the pandemic has had a major impact on economic activities around the world. But with effective controls, China has maintained normal production and further strengthened its position in the global industrial chain,” Pan said.
As the variants of COVID-19 have brought new challenges, Pan believes China can strike a balance between epidemic control and economic development.
The State Administration of Foreign Exchange confirmed earlier this month that China continued to see net cross-border capital inflows in April as supply and demand in the domestic foreign exchange market were still in balance.
China has strong economic resilience and great potential, and its solid long-term fundamentals will not change, said Wang Chunying, deputy chief administrative officer.
A survey by the China Council for the Promotion of International Trade showed last month that the majority of foreign companies in China still regard the country as one of their key strategic markets, despite challenges to their businesses from resurgences. of COVID-19. Some 86% of respondents are satisfied with China’s policies to stabilize foreign investment.
With China’s unwavering opening up, global enterprises will continue to share its development dividends in the future.
BlackRock has been operating in China for over 15 years. “We believe and maintain a long-term optimistic attitude about the potential and resilience of the Chinese market,” said Tony Tang, head of BlackRock’s China operations.