Capital Group eyes China expansion, rejects MRF
The US firm will not use the Hong Kong-China mutual recognition of funds scheme but plans to wait for rules allowing direct access to mainland retail clients, says its Asia head.
US asset manager Capital Group feels the mutual recognition of funds (MRF) scheme is not the best way to access China and plans instead to set up an onshore presence and directly access the retail market, when regulators allow it.
The firm, with $1.4 trillion in assets under management, has decided not to participate in the cross-border MRF scheme, which launched on July 1 last year with an initial quota of Rmb600 billion ($97 billion). Nor does it plan to set up a wholly foreign-…
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