SCHRODERS has received Chinese regulatory permission to form a majority-owned wealth management venture with a unit of Bank of Communications (BOCOM), the country’s fifth biggest lender.

The announcement, made by the global asset management firm Monday, came days after Schroders applied to set up a wholly-owned mutual fund business in China, where the government fully opened up China’s giant financial sector to foreign companies last year.

“Schroders has long been committed to the Chinese market,” Peter Harrison, Schroders Group chief executive officer, said in a statement.

“The Chinese market represents a significant opportunity for Schroders, entailing the world’s second and third largest equity and bond markets respectively.”

But some fear that Schroders is setting up too many platforms in China, potentially diluting its resources to run its local businesses. Schroeder already owns a mutual fund venture with BOCOM and operates a private fund business in the country.

“Why would they burn themselves with an additional platform?” said Peter Alexander, founder of fund consultancy Z-Ben Advisors.

(SD-Agencies)