UBS Group AG is exploring options to expand its asset management business in China, taking advantage of relaxed rules to defend its leading position among foreign players in the 100 trillion yuan (US$14.8 trillion) market.

Under new regulations introduced this year, foreign firms such as UBS can take full control of their mutual fund joint ventures in China, or seek partnerships with a local bank’s asset management arm to increase offerings.

“We’re not ruling out any opportunities,” Raymond Yin, head of Asia Pacific for UBS Asset Management said in an interview from his base in Shanghai, without specifying any plans. “We will continue to invest in the China market to maintain our leadership position.”

China is pressing ahead with the opening up of its financial industry and capital markets. Companies such as BlackRock Inc. have embraced the opportunities, with the world’s largest asset manager winning approvals in the past month for a wealth management joint venture.

The heightened foreign competition is putting pressure on incumbents like UBS that have long benefited from a first-mover advantage in China. UBS this year became the biggest global manager of China funds with a 9.1 percent market share, up from 5.1 percent in 2018, according to Shanghai-based consultancy Z-Ben Advisors Ltd.

Regardless of the final decision on the next move, the Swiss bank’s money management unit plans double-digit growth in its China headcount over the next few years, after doubling staff since 2017 to more than 40 people, Yin said.

The Zurich-based bank has obtained licenses ranging from banking and securities to fund management, giving it one of the most diversified portfolios among foreign firms in China. It was the first global manager to win control of a local securities joint venture in 2018.(SD-Agencies)