Edinburgh-based Baillie Gifford has established an office in Shanghai and completed registration as a private securities fund manager in China.
Baillie Gifford Investment Management (Shanghai) is now registered as a private securities fund manager with the Asset Management Association of China.
Besides, it has secured a private fund manager (PFM) licence.
The move is said to enhance Baillie Gifford’s existing relationships with mainland China-based firms such as Alibaba, Ant Group, and Tencent.
The Scottish fund manager has nearly £45bn invested in over 100 Chinese companies.
With the latest move, the firm will be able to invest in more Chinese firms as well as offer private strategies to Chinese investors.
In 2008, Baillie Gifford unveiled its first China fund.
Through the new China presence, the fund manager also plans to boost its knowledge of cultural developments and enter into tie-ups with universities.
MacDougall said: “We are building a team based in Shanghai to provide devoted, local expertise to boost our research into these rising Chinese companies.”
“We hope that combining knowledge from the team on-the-ground with broader perspective from investment teams in Edinburgh will allow us to assess the opportunities with greater insight, in the search to find China’s future winners.”
In 2019, Baillie Gifford appointed Amy Wang as the head of China with responsibility for building the Shanghai team.
Wang said: “Being registered as a PFM allows us to build a client base of Chinese investors who share our belief that taking a long-term approach, investing over five to ten years or more, will support the growth of Chinese companies and produce strong, consistent investment returns.”
Baillie Gifford developments
Last year, the fund manager launched an office in Frankfurt, Germany.
The new location is the firm’s first client office in mainland Europe and its “gateway to Europe”.
In 2018, Baillie Gifford unveiled plans to set up an office in Dublin as part of its Brexit contingency planning.