Mutual fund company Vanguard has launched its Wholly Foreign-Owned Enterprise (WFOE) in China – Vanguard Investment Management (Shanghai) Limited – in the Shanghai free trade zone.
The new entity enables Vanguard to bring its investment philosophy to China’s vast population of investors.
The newly established WFOE office, located in the Shanghai World Financial Center and occupying approximately 1,271 square metres, will plan to carry out investment management, investment consulting, client liaising and servicing, marketing, investment research, investor education and business development.
The WFOE’s legal representative is Charles Lin, Vanguard’s head of China, and the general manager is Clare Zhao, Vanguard’s head of China institutional business.
“This new milestone solidifies our commitment to China,” says F. William McNabb III, chairman and chief executive officer of Vanguard. “Vanguard is pleased to extend our mission to Chinese investors: To take a stand for them, to treat them fairly, and to give them the best chance for investment success.”
Vanguard has been serving institutional clients in China, including insurance, banking, asset managers and other financial institutions, for many years. In 2014, it set up a representative office in Beijing to facilitate communication between its institutional clients in China and its Hong Kong office, as well as work with regulators.
“We are optimistic about the Chinese market and excited about the long-term opportunities to serve Chinese investors,” says Lin. “Our unique ownership structure and longstanding commitment to low-cost investing mean we are well positioned to serve the needs of Chinese investors. The launch of our WFOE is our first step to lowering the cost of investing in China and help Chinese investors reach their investment goals.”