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.

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.

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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.