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The company is also considering launching products under the
so-called Qualified Domestic Limited Partnership (QDLP), an
outbound investment scheme, to help mainland Chinese invest
offshore, said the people with direct knowledge of the plans.
China fully opened its fast-growing mutual fund sector to
foreign companies by removing ownership restrictions on April 1
as part of an interim trade deal with the United States signed
in January.
BlackRock <BLK.N>, Neuberger Berman and Fidelity International
have applied to set up fully-owned mutual fund subsidiaries in
China, while Vanguard Group and Schroders will follow suit.
VanEck, whose strategies include emerging market equity and
fixed income, gold and exchange-traded funds (ETFs), started
planning for China entry late last year, when Beijing vowed to
fully open its financial sector in 2020, a source said.
The coronavirus outbreak slowed VanEck's China strategy, but in
recent months the company had been in active contact with
Chinese regulators. It hasn't yet submitted an application
though, the sources said.
Representatives at VanEck's Shanghai unit declined to comment.
The sources declined to be named as the company's plans are not
public yet.
VanEck, which runs both actively- and passively-managed funds,
has not finalized its China product strategy yet, and its mutual
fund plans are also subject to change, the sources said.
Separately, VanEck, whose founder John van Eck was a well-known
pioneer in gold investments, is also exploring businesses under
China's QDLP scheme, the sources said, tapping into Chinese
investors' penchant for gold.
(Reporting by Samuel Shen and Sumeet Chatterjee;Editing by
Elaine Hardcastle)
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