09 Aug 2021

Guidance – China Alts Managers Expanding Offshore (English)

Access for global institutional investors to Chinese onshore managers can be challenging. This memo provides guidance on the regulatory and practical differences between onshore China and offshore Hong Kong and Singapore for Chinese onshore managers looking to expand offshore.

There can be challenges to marketing to international investors for several reasons including the different regulatory and operational environments. Chinese onshore managers may therefore choose to expand their operations offshore to be able to distribute their products more efficiently to global allocators – typically choosing Hong Kong or Singapore as their destinations.

It is important that managers understand the regulatory framework, operational expectations and practical differences when selecting a new jurisdiction.

In this memo we discuss:

  • A comparison of regional practices covering regulation, fund structuring, investors, marketing, operations, investment strategy and investment restrictions.
  • Key regulatory differences in areas such as regulatory bodies, key rules, fund definition and licencing requirements and distribution and marketing.
  • Practical considerations for setting up an offshore asset management business including office space and rental, talent pool and the financial services ecosystem.