(Yicai) Oct. 23 -- Fidelity International confirmed that the global investment manager will let go some staff at its center of excellence in the Chinese city of Dalian.

After careful consideration, Fidelity has decided to optimize certain functions managed and supported by the Dalian Centres of Excellence, the UK-based firm told Yicai. Though its headcount in Dalian will drop, it will remain an important center of excellence, Fidelity noted.

According to online rumors, Fidelity plans to cut around 100 jobs in Dalian, while in a report yesterday Reuters cited two people with knowledge of the matter as saying that the layoffs will involve 500 employees.

The redundancies will mainly impact departments serving Fidelity's North American business, a person familiar with the matter told Yicai.

Fidelity said it remains committed to the firm’s mutual fund business in China, including pension and asset management, adding that some new functions will be added in Dalian, with the aim of continuing to grow the firm's business and use local talent well.

Fidelity International manages the international investment business of Fidelity Investments, one of the largest pension fund managers in the United States. It manages USD350 billion worth of assets in 24 countries. 

Fidelity International has built two centers of excellence in Dalian, supporting the technology, operations, and investment support needs of the company and Fidelity Investments, according to its website.

Fidelity International set up a representative office in Shanghai in 2004 and another in Beijing in 2008 and established a tech and operations center with more than 1,000 staff in Dalian in 2007. In January 2017, it was the first to be granted the status of a wholly foreign-owned enterprise that operates as a fund manager, allowing it to invest in China using money raised there.

China’s securities regulator approved the formation of FIL Fund Management China, with up to 200 employees, in August 2021, marking Fidelity’s entry into the public fund management business in the country. The unit has sold several equity and bond funds in the past two years and is still committed to obtaining pension investment qualifications and expanding in the Chinese market.

Editor: Martin Kadiev