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【Introduction】Huatianfu Fund and Brazil's Bradesco Asset Management signed a memorandum of cooperation to further deepen the cooperation between China and Brazil in the asset management industry

China Fund News reporter Cao Wenjing

Public offerings “going overseas”, press the accelerator!

The reporter learned that recently, China Universal Asset Management and Brazil's Bradesco Asset Management signed a strategic cooperation memorandum to further deepen the cooperation between China and Brazil's asset management industry. In addition to E Fund Management, this is another fund company that took the 50th anniversary of the establishment of diplomatic relations between China and Brazil as an opportunity to have in-depth exchanges and reach a consensus on cooperation with Brazilian asset management institutions.

In recent years, the domestic public offering industry has accelerated its pace of opening up to the outside world. For example, the first batch of Saudi ETFs were launched this year, and the ChiNext 50 ETF entered the European market. Fund companies' "going overseas" business has blossomed in many places.

China Universal Asset Management and Brazil's Bradesco Asset Management signed a memorandum of cooperation

As the 50th anniversary of the establishment of diplomatic relations between China and Brazil approaches, the domestic public offering industry is also actively promoting China-Brazil financial cooperation.

Recently, China Universal Asset Management and Brazil's Bradesco Asset Management signed a strategic cooperation memorandum to further deepen cooperation in the China-Brazil asset management industry.

Public data shows that Bradesco Asset Management is an asset management company under Bradesco Bank, the largest private financial institution in Latin America. As of mid-August 2024, its assets under management will exceed US$150 billion. At the same time, Bradesco Asset Management is also the only company in Latin America that has obtained the Qualified Foreign Institutional Investor (QFII) qualification. It has entered the Chinese market through its Hong Kong office since 2011 and started issuing Chinese funds in 2020.

The reporter learned that as China-Brazil relations continue to reach new levels, through this cooperation, China Universal Asset Management and Bradesco Asset Management will uphold the common vision of global development, give play to their respective professional advantages and market experience, and establish deeper cooperation in China, Brazil and even the entire Asia-Pacific and Latin American regions, so as to further promote the development of China-Brazil asset management industry and capital market.

Li Wen, Chairman of China Universal Asset Management, said that the accelerated construction of China's financial power, the high-quality development of the capital market, and the construction of Shanghai as a global financial center and a global asset management center have provided valuable historical opportunities for the international development of Chinese and foreign asset management institutions. China Universal Asset Management has always adhered to the international development strategy and actively promoted and led the two-way opening of the public fund industry. With this cooperation, the company will further expand its investment capabilities and product services in Brazil and wider regions. At the same time, it will actively support Bradesco in expanding global investment opportunities and territories, and build a bridge for Brazilian investors to better invest in China.

Bruno Funchal, CEO of Bradesco Asset Management, said that he is firmly optimistic about the development prospects of the Chinese market, which will provide our investors with huge investment opportunities in many fields such as electric vehicles, biotechnology, solar energy, etc. We also believe that the commodities in the Brazilian market are areas of strategic significance to the Chinese economy and are also very attractive to Chinese investors.

The reporter noticed that in addition to China Universal Asset Management, E Fund Management also had in-depth exchanges with Itaú Asset Management, the second largest asset management company in Brazil, and the two sides reached a consensus on further business cooperation in the future. In recent years, China-Brazil relations have maintained a good development momentum. In March this year, the first China-Brazil Financial Forum was successfully held. During the discussion, all parties involved unanimously stated that they would take the 50th anniversary of the establishment of diplomatic relations between China and Brazil as an opportunity to open up ideas, innovate models, and further expand cooperation in emerging fields.

Public offerings "going overseas" press the accelerator

Since the beginning of this year, the pace of public offerings going overseas has accelerated. For example, in late February this year, E Fund signed a memorandum of cooperation with Riyadh Capital, a leading Saudi asset management company, and the two sides will carry out exchanges and cooperation in the investment field. In early March, China Southern Fund reported a product called "China Southern Fund China Southern East England Saudi Arabia ETF". This fund is another Saudi Arabia ETF listed on the Hong Kong Stock Exchange after Huatai-PineBridge Fund reported the first Saudi Arabia ETF in the mainland at the end of last year.

In late March, China Universal MSCI China A50 Connectivity ETF was listed on the Singapore Exchange. It is also the first ETF listed in Singapore and tracking the MSCI China A50 Connectivity Index. In addition, China Universal Singapore, the third overseas subsidiary of China Universal Asset Management, opened for business. In June, Invesco registered and established a UCITS ETF tracking the ChiNext 50 Index in Ireland, which was officially listed on five exchanges including the Dublin Stock Exchange in Ireland, the London Stock Exchange in the UK, the Deutsche Börse Group, the Swiss Stock Exchange, and the Italian Stock Exchange.

In addition, there are many institutions seeking QDII qualifications. The latest information on the official website of the China Securities Regulatory Commission shows that since the beginning of this year, Bodao, Pengyang, and Hongde Fund have successively submitted applications for approval of qualified domestic institutional investors (QDII) qualifications, and the materials have been corrected. In addition, Essence Fund, Nord Fund, Ruiyuan Fund, Caitong Securities Asset Management, etc. also submitted application materials last year to apply for QDII business qualifications.

In terms of policy, in mid-March this year, the Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First-Class Investment Banks and Investment Institutions (Trial) emphasized the need to help promote high-level opening up. Coordinate opening up and security, adhere to the equal emphasis on "bringing in" and "going out", and steadily expand institutional opening up. Orderly promote cross-border interconnection business pilots such as "fund mutual recognition", "ETF mutual listing", and "cross-border wealth management", and study and explore the promotion of cross-border brokerage business pilots.

Industry insiders said that the overseas expansion of public funds is conducive to close contact with and service to overseas institutional investors, telling good stories about China, actively attracting overseas long-term funds to enter the market, and bringing more opportunities for overseas investors to invest in Chinese assets; at the same time, further improving the product line layout, enhancing the ability to allocate assets globally, and bringing Chinese investors opportunities to earn income from overseas high-quality assets. With the continuous deepening of the high-level opening up of the financial industry, it is believed that more and more excellent public funds will consider accelerating their international business layout, expanding their participation and influence in the international market, and improving the overall internationalization level of China's public fund industry.

Editor: Captain

Audit: Wooden Fish

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