Shanghai Accounts for over 95% of Foreign Invested Private Equity AUM

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Shanghai has emerged as China’s preeminent centre for foreign-invested private equity asset management, according to the latest data from the local securities regulator.

Shanghai’s foreign-invested private equity assets under management currently stands at around 60.27 billion yuan, according to data released by the Shanghai branch of the China Securities Regulatory Commission (CSRC) on 67 November.

This amount accounts for over 95% of foreign-invested private equity assets under management in China.

Shanghai is currently host to a total of 32 foreign-invested private equity asset management organisations, accounting for 84% of China’s total. 9 of the largest such organisations in terms of AUM are situated in Shanghai.

In June 2016, the “Responses to Issues in Relation to Private Equity Fund Registration” stated that qualified foreign invested private equity securities investment fund managers could engage in operations in China, marking the official start of foreign entrants into the sector in Shanghai.

In August 2016, UBS became the first foreign bank to have a private equity asset management subsidiary commence operation in Shanghai.