WFOE growth improves but viability concerns remain
Many foreign fund managers are pinning their China distribution strategies on the WFOE scheme. But the programme's limitations pose familiar problems for scaling the business.
No one expects doing business in China to be easy but the Hong Kong fund industry's frustrations over how haltingly mutual recognition is working out, as highlighted last week in AsianInvestor, also extends to fund firms with wholly foreign-owned entities (WFOE) in China.
For asset managers, the WFOE setup in Shanghai's free-trade zone has become the preferred option for market entry into China over the last two years.
On the surface, the programme appears to be going well. A ne…
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