Despite strict guidelines and barriers within China, which tend to turn off global fund houses from conducting business, Fidelity International recently announced that it is ready and willing to pursue joint ventures there sometime in the near future.
Since 2002, a handful of global financial firms have entered into the Chinese market and successfully set up Sino-foreign fund ventures. However, the international affiliate of mutual fund giant Fidelity Investments has long avoided doing so.
According to Chris Ryan, a managing director for Asia ex-Japan, the reasoning behind Fidelitys new stance is due to an increase in the flexibility in structure as well as an increase in the choices of partners.
Obviously, it would depend on us being able to negotiate the right kind of deal with a partner in China, Ryan added. Its one of the several things we need to do in China.
Although Fidelity is slowly coming around to the idea of playing a bigger role in one of the worlds most dynamic markets, Ryan reinforced that a joint venture would not take place until next year at the earliest.