The move will see Vanguard exiting a CNY27tn ($3.9tn) fund market. Credit: Georg Bommeli on Unsplash.

American asset manager Vanguard is set to close down its remaining operations in China after commencing the process of withdrawal from the country two years back, Bloomberg has reported.

The move will see Vanguard exiting a CNY27tn ($3.9tn) fund market, which has become attractive for the firm’s global rivals.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The company has already informed the Chinese government about plans to close its Shanghai-based division, people privy to the development told the publication.

Besides, Vanguard is weighing an option to sever its ties with a robo-advisory joint venture (JV) with Ant Group, the sources added.

If plan materialises, it will mark the firm’s complete departure from the Chinese market.

The turnaround flags a warning for Vanguard’s global counterparts such as BlackRock and Fidelity International, which are trying to set up their units in China amid significant potentials offered by the country’s recovery and reform in the pension sector.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Vanguard noted that its Shanghai division and the JV are operating usually, while Ant and the JV representatives substantiated the claim.

However, they refused to offer additional details.

Representative for China Securities Regulatory Commission is yet to make any comment.

Vanguard’s plan to fully withdraw from the Chinese market dates back two years ago when the firm abandoned initiatives for a mutual-fund management license in the country.

The firm’s Chinese venture, where it has a a 49% stake, recorded a higher-than-expected loss in 2021.

The latest development comes after Vanguard reportedly planned to shutter its UK financial advice arm as it failed attract clients.