The license will allow UBS’s wholly foreign-owned enterprise, UBS Asset Management (Shanghai), to offer onshore fixed-income, equity, and multi-asset private funds to investors in China.
UBS Asset Management is the first qualified domestic limited partner licence holder to receive a private fund management licence in the country.
UBS entered into a joint venture with the State Development & Investment Corporation (SDIC) in 2005, forming UBS SDIC Fund Management. In 2011, the Shanghai enterprise was formed, helping to secure the company’s reach into China.
Rene Buehlmann, group managing director and head of the Asia Pacific region at UBS Asset Management, said: "Securing the license expands the breadth and depth of our domestic offering, complements our offshore capabilities and, importantly, demonstrates our continued support of China in its efforts to open its capital markets to the world."
He added: "With the addition of the PFM license, augmented by our other platforms in China, we can provide a broad range of services to onshore and global clients. It also allows us to work more closely with subsidiaries of global firms in China to meet their domestic investment needs."
Aries Tung, managing director and head of strategy and business development for China at UBS, said: “With the continued liberalisation of China’s economy, domestic investors can be expected to seek to diversify their investments across a broad and expanding range of traditional and alternative asset classes and geographies.”
“UBS is well positioned to help them build portfolios which not only have the potential to generate reasonable returns but also diversify downside risk.”