A Chinese unit of German banking group Deutsche Bank has reportedly obtained a domestic fund custody licence, in the latest sign of China’s financial services sector liberalisation.
The licence from the China Securities Regulatory Commission (CSRC) will enable the bank to hold securities on behalf of mutual funds as well as private funds based in China after completing the relevant administrative process, noted Reuters.
Deutsche Bank is the second to secure this licence in China. In September this year, Citi became the first US bank to get the licence.
Deutsche Bank China chief country officer Rose Zhu said: “Many of our global institutional clients are actively exploring and acting on the unfolding opportunity to tap into the exponential China market, which is still fast growing and opening up.
“At the same time, the booming domestic fund industry is looking for global expertise to foster further development.”
Earlier this year, China scrapped foreign ownership limits on securities and fund management firms in order to increase competition.
The market has lured many foreign players even those in the US, despite prevailing trade tensions between the two countries.
Recently, Goldman Sachs signed an agreement to take 100% control of its securities joint venture (JV) in China.
Last month, JPMorgan raised its stake in its China securities JV to 71% from 51%.
Also last month, Pictet Asset Management, the asset management arm of Geneva-based Pictet Group, launched a unit in Shanghai in a bid to tap the evolving fund market in China.
In August this year, BlackRock received the regulatory nod to launch mutual fund unit in China.
China recently also gave the approval to the wealth management JV between BlackRock, Temasek and China Construction Bank.
Standard Chartered too reportedly submitted an application for a brokerage licence with the CSRC.