Shanghai Rayliant Jingchun, another foreign investment management company, enters China's investment market
Published: Sep 23, 2021 11:38 PM
Photo shows a night view of Shanghai, east China. Photo: Xinhua

Photo shows a night view of Shanghai, East China. Photo: Xinhua

Shanghai Rayliant Jingchun Investment Management Company, controlled by Rayliant Global Advisors Limited, an internationally renowned leader in fundamental quantitative investment, has successfully completed the registration as a foreign private equity fund manager in China. With this milestone, the firm has become another foreign capital management institution entering the domestic market after BlackRock, Fidelity and many other institutions.

Rayliant is globally renowned for its specialized research in fundamental quantitative investment. With a management portfolio of $ 27 billion, the bulk of the company's main clients are professional institutional investors, including world-renowned pension funds, sovereign funds and large asset management companies. 

At present, the A-share assets managed by the company's systematic investment strategies have exceeded $10 billion.

BlackRock, another global asset management company, established BlackRock Funds and a joint venture for wealth management with the China Construction Bank, which form the two main bodies of the company's market layout in China.

In September, BlackRock Funds issued the first public fund in China.

According to Morningstar, an investment research firm, the funds giant is among the biggest buyers of debt from the embattled Chinese property developer Evergrande. After it added 31.3 million Evergrande bonds between January and August, the total investment reached 1 percent of its $1.7 billion Asian high-yield bond fund assets.

On August 31, China Evergrande Group, the country's debt-laden property developer, said that there are 240 billion yuan ($37.15 billion) debts due within one year and some projects have been suspended for lack of payment.

Other large fund companies, including Fidelity Investments, have reduced their positions in Evergrande by as much as 47 percent between January and July, Morningstar said.

"However, these foreign investment management institutions will not be affected too much by the Evergrande incident," Dong Dengxin, Director of the Finance and Securities Institute of Wuhan University of Science and Technology, told the Global Times on Thursday, adding that these firms have more long-term investment products, including pension and funds.

The government should promote the development and supply of medium and long-term investment products, instead of high-risk products like investment in real estate in China, Dong added.

Dong also expressed his hope that these foreign investment management companies can bring more diversified options for domestic investors, which will complement the domestic market.