(Yicai) Oct. 10 -- Crucial updates on China's capital market internationalization, regulatory policies, and Shanghai's opening-up of the fund industry are available in the 2024 edition of the Shanghai Guidebook for Overseas Asset Managers, released today.

The handbook, which was distributed at the 2024 Shanghai Global Asset Management Forum, highlights improvements to the mainland-Hong Kong Mutual Recognition of Funds and the trading of depositary receipts under the Shanghai-London Stock Connect. It also expands on the Cross-border Interbank Payment System and capital management for Qualified Foreign Institutional Investors.

Compiled by the Shanghai Asset Management Association, the guidebook provides details of new asset management industry policies from 2023 to early 2024, such as measures to promote high-quality development of the equity investment sector, as well as detailed information on the filing and operational requirements for private investment funds.

The handbook, which has been published each year since 2020, aims to provide policy guidance and practical advice for foreign asset managers looking to establish or expand their presence in China, particularly in Shanghai.

Shanghai unveiled its Action Plan 7.0 in February to become a world-class business environment. The city has launched a green finance service platform and a cross-border data service center in the Lingang New Area, the guidebook said.

Shanghai was home to 1,771 licensed financial institutions as of the end of last year, just over 30 percent of which are foreign funded. By June, 92 institutional investors had joined the Qualified Foreign Limited Partnership scheme, where overseas capital can be converted into Chinese yuan for investment in the domestic capital markets, while 63 participated in the Qualified Domestic Limited Partnership program, a trial outbound scheme where Chinese funds invest in overseas markets.

Shanghai remains a key hub for China's fund industry. Just under half of the country’s public fund management companies were based in the city as of June, at 76 out of 163. And 30 of them were wholly foreign-owned or joint venture firms. These Shanghai-based firms oversaw 4,724 public fund products with total assets under management of CNY11.3 trillion (USD1.5 trillion).

The city also leads in private fund management. Shanghai had 3,842 private fund managers as of June, which managed 43,500 funds and CNY4.9 trillion (USD692.8 billion) in assets under management.

Editor: Kim Taylor