China News Agency, Shanghai, May 25(reporter Jiang Yu) based on the scale of managing assets, Vanguard group, the world's largest public fund company, officially launched its pioneer foreign investment management (Shanghai) Co., Ltd. in
Shanghai free trade zone on the 25th.
The Vanguard group, based in ValleyForge, pa., manages $4.2 trillion of assets up to March 31, 2017. The newly established wholly foreign-owned enterprise in Shanghai plans to carry out business activities such as investment management, investment consulting, customer liaison and services, marketing, investment research, investor education and business development in China.
The chairman and chief executive of the group, mike McKenna, said: "the group is committed to the fundamental interests of investors, and treats all investors equally and provides investors with the best opportunities for success. We are happy to bring this mission to China."
In 2014, the Vanguard group established a Beijing representative office and has been serving its institutional clients in China for years, including insurance companies, Banks, asset management companies and other financial institutions. Lin Xiaodong, managing director and President of the group in China, said the company would expand its business to China's personal customers after setting up a sole proprietorship in Shanghai.
Different from other investment management company, the Vanguard group is not a listed company, but also not some private shareholders, its owner is group raised funds, and these funds are held by the investors. This unique ownership structure means that the group can reduce the rate of the fund, giving more profits to investors, and reinvesting its profits in business.
When the Shanghai Free Trade Zone (FTZ) was first introduced in 2013, it was presented as a testing ground for new reforms. Where proven successful, these would be expanded across the entire country. Setting up a company in Shanghai Free Trade Zone would enjoys all the beneficial policies issued for foreign companies in Shanghai.
