In recent times, Chinese asset management firms have been significantly expanding their global presence through the establishment of overseas subsidiaries and forging partnerships with regional counterparts. In this context, E Fund Management Co., Ltd. (E Fund), China's leading fund manager, has recently signed a memorandum of understanding (MoU) with BBL Asset Management Co., Ltd. (BBLAM), a major player in Thailand's asset management industry. This collaboration seeks to provide investors in Thailand and beyond with improved access to the Chinese capital market by offering a wider range of investment products and services.
Over recent years, Thailand has experienced increasing interest in foreign investment opportunities. Notably, Thai investors have displayed considerable enthusiasm for investing in China, with investments in China funds surpassing US$4.3 billion as of February 2024. Nonetheless, the presence of Chinese onshore managers in the Thai market remains relatively limited.
"China is an important market for Thai investors given its close ties with Thailand; as we expand our investment scope into China, we believe that now is the time to increase and bolster the relationship with local asset managers such as E Fund to improve and expand on product offerings and performances through a local perspective. China, now one of the most appealing markets in the world represents an investment opportunity through continuous technological innovation and industrial upgrading that is too hard to ignore. The market itself is underrepresented in the global indices and we envision an increasing percentage towards China in the global markets going forward", said Mr. Anak Kittivat, VP, Global Investment Management from BBLAM.
"the current valuation of the Chinese equity market makes it much more appealing and with E Fund's extensive local investment expertise in the Chinese market we aim to leverage on our QFII license to access Chinese local funds and investment products directly; our objective is to bring a wider and broader Chinese investment product to Thai investors and increase further collaboration with Chinese firms in this regards". He further adds.
The MoU was signed by Dr. Natthapachara Chiarawongse, CEO of BBLAM and Mr. Shawn Xinrong Woo, Co-CEO of E Fund. "We are pleased to partner with BBLAM", said Mr. Shawn Xinrong Woo, Co-CEO of E Fund, "This partnership signifies our commitment to advancing our global development strategy and underscores our dedication to providing better services for global investors. By forging this partnership, we will strengthen our presence in Thailand and the broader Southeast Asian region and provide Thai investors insight and access to the Chinese market. Looking forward, we would like to bring a wider suite of solutions to our global clients as the markets continue to open up".
BBLAM's CEO, Dr. Natthapachara Chiarawongse stated, "As a broadly diversified investment management company, BBLAM offers Thai clients with a comprehensive global product lineup. Collaboration with the largest onshore fund house will certainly enhance our China product offering and our investors will benefit from E Fund's local insights and investment capabilities". Both companies express confidence that this collaboration will generate synergies and is aptly poised to expand market reach, provide enduring and sustainable value to clients, and foster stronger bonds between the asset management industries of China and Thailand.