Shanghai accelerates push to build a global asset management center

Shanghai is becoming increasingly attractive to global asset management institutions. On May 18, the executive meeting of the Shanghai Municipal Government approved in principle the "Several Opinions on Deepening the Development of Shanghai as a Global Asset Management Center." The meeting noted that Shanghai has made steady and tangible progress in advancing its global asset management center agenda in recent years and should benchmark itself against leading international asset management hubs to achieve greater breakthroughs in functional capacity and institutional opening-up. It also called for a sharper focus on core elements to strengthen Shanghai's capabilities as an asset management center.

Backed by supportive policies and a vast market, Shanghai is rapidly emerging as a key hub for global capital allocation. According to the latest data from the Shanghai Office of the China Securities Regulatory Commission (CSRC), as of the end of April, Shanghai was home to 33 securities firms, accounting for 22 percent of the national total; 68 public mutual fund management companies, representing 45 percent nationwide; and 36 futures firms, or 24 percent of the national total. Shanghai ranked first nationwide in the number of all three categories of asset management institutions. In addition, 3,620 private fund managers in Shanghai had completed registration with the Asset Management Association of China as of the end of March.

As a frontier city for China's financial opening-up, Shanghai has become a primary gateway for foreign financial institutions entering the Chinese market. All of the world's top 10 asset managers by assets under management have established a presence in Shanghai, helping create the country's leading concentration of institutions in areas including the Qualified Domestic Limited Partner (QDLP) program, the Qualified Foreign Limited Partner (QFLP) program, and wholly foreign-owned public fund businesses. Of China's nine wholly foreign-owned public mutual fund companies, seven are based in Shanghai, including six established since 2020, among them BlackRock Fund Management (Shanghai) Co., Ltd. and Neuberger Berman Fund Management (China) Ltd., both backed by leading global asset managers. All five Sino-foreign joint venture wealth management subsidiaries in China have also established their headquarters in Shanghai.

Shanghai has also demonstrated strong administrative efficiency and a service-oriented approach as it expands high-level financial opening-up. In January, two newly established wholly foreign-owned insurance asset management firms completed all preparatory work in just six months and held a joint opening ceremony in Shanghai, underscoring what market participants have described as "Shanghai speed."

As the core area supporting Shanghai's international financial center ambitions and the city's global asset management center initiative, the Lujiazui area has attracted 70 percent of China's foreign-funded asset management institutions, making it the preferred location for global firms operating in the country. Lujiazui has also helped 27 foreign institutions obtain qualifications as Wholly Foreign-Owned Enterprise Private Fund Managers (WFOE PFM), including Aspect Capital China, established in Shanghai by Aspect Capital Limited in 2024.

"We are encouraged by the current growth momentum and look forward to further expanding our team in China while strengthening and deepening relationships with Chinese investors," said Anthony Todd, co-founder and chief executive officer of Aspect Capital, at a recent Lujiazui Global Asset Management Exchange Seminar.

Looking ahead, Shanghai's appeal to global asset management institutions extends well beyond its role as a business location. The city has built the country's most comprehensive and concentrated financial infrastructure and market ecosystem. Its strongest competitive advantage lies in the combination of institutional opening-up, market depth, institutional concentration, industrial support, and professional talent.

Experts interviewed by International Financial News said Shanghai's various asset management institutions should build on their respective strengths and coordinate more closely in the next stage of development. Wealth management subsidiaries of banks, for example, should focus on developing flagship domestic institutions; insurance asset managers should play a greater role as providers of long-term patient capital; and futures firms should leverage differentiated strengths. Experts also called for deeper institutional opening-up, continued efforts to attract foreign institutions and international talent, and stronger support for Shanghai's ambition to become a leading global asset management center.