(Yicai Global) Nov. 7 -- Shanghai has become the top destination for foreign private equity institutions entering China as the number of such firms in the eastern megacity has risen to 32 with more than CNY60 billion (USD8.3 billion) of assets under management.Some 84 percent of foreign PE institutions in China are registered in Shanghai, according to data revealed by the Shanghai Securities Regulatory Bureau today. They manage 203 products valued at over CNY60 billion, accounting for more than 95 percent of the nationwide total for foreign PE firms. In terms of staff, the 32 companies hire 505 employees in total.

Since June 2016, China has been open to foreign securities fund managers to develop their business locally, prompting a boost in capital and personnel.

Several PE institutions said they will continue to deepen their business in China, focusing on the research and development of new strategies and products, and exploring innovative cooperation with financial institutions involving banking, insurance, securities, and futures. They intend to further diversify their products including interbank bonds and exchange options while enlarging the scale of their research and sales teams.

In the past three years, the American parent of Bridgewater China has increased its capital twice in the unit, raising the latter's registered capital to CNY310 million from CNY50 million (USD43.1 million and USD7 million). Moreover, Zurich-based UBS has boosted the registered capital of its Chinese unit to CNY345 million from USD2 million.

The companies are widening their scopes as some 14 foreign PE institutions in Shanghai, including Bridgewater China, UBS, Man Group, Neuberger Berman, and Value Partners, have obtained the necessary qualifications to conduct investment advisory business, which means that they can issue PE products and consult securities asset managers, fund units, and banks' wealth management subsidiaries.

The No. 1 among the 14 is Bridgewater China as the firm has unveiled 55 products with a scale of about CNY34 billion (USD4.7 billion), including investment advisory products worth about CNY15 billion. Winton Investment Management is No. 2 with its 22 products valued at about CNY8.6 billion (USD1.2 billion).

Editor: Emmi Laine, Xiao Yi