The American giant of the “Vanguard” fund group will close its main office in Shanghai and exit a joint venture venture with the group “Ant Group”, steps that will end its 6-year presence in the second largest economy in the world, according to what was reported by thework “CNBC”, citing sources, and I saw it Agency.
The full exit from the Chinese market of the 27 trillion yuan ($3.92 trillion) funds will come nearly two years after the company announced it would not seek to set up a money management unit. in a change from previous ambitious plans to expand the market.
Ant said the joint venture and the financial advisory service were “business as usual.” Vanguard did not respond to a request for comment from CNBC.
Interestingly, “Vanguard” – the second largest asset management company in the world – has $7.1 trillion in asset in management and owns a 49% stake in the joint venture venture controlled by “Ant Group”.
The sources, who asked not to be named because the talks were confidential, said Ant had received notice of the expected withdrawal and was considering buying Vanguard’s stake.
The planned release contrasts with the expansions in China by US rivals such as BlackRock and Fidelity in recent years. Additionally, the bank wealth management arms of JPMorgan and Morgan Stanley received full ownership approvals for their existing operations in China at the beginning of quest’year.
Vanguard will close its Shanghai office, a separate entity from the joint venture venture with his team of products and technology, and will lay off employees there, according to two of the sources.
One of the sources said the US company had informed the local government in Shanghai.
Interestingly, the joint ventureknown as the “Vanguard-Ant JV,” he said in a previous statement of having 3 million investors as of January 2022. Its fund portfolio services are heavily dependent on automation.