by Ji Yao

China’s financial market continues to evolve as a global investment destination, welcoming foreign investors with its expanding openness and strategic potential. Against this backdrop, Ding Wencong, General Manager of Manulife Fund Management, shares insights on the company’s journey in China and its plans for the future.

Jiemian News: When did Manulife Financial Corporation enter the Chinese market, and what has its development journey been like?

Ding: Manulife Financial Corporation was established in 1887, with its headquarters in Toronto, Canada. Our operations span North America, Asia, and Europe, covering 20 countries and markets.

In China, Manulife has been dedicated to its growth for over 30 years, consistently optimistic about the market's potential. We have brought leading global expertise to serve Chinese customers. In 1996, we formed China’s first Sino-foreign joint venture life insurance company, Manulife-Sinochem Life Insurance, holding a 51 percent stake.

Since 2010, we have focused on asset management in China, acquiring a 49 percent equity stake in the then-named TEDA Manulife Fund. This marked our entry into the Chinese public fund market. In April 2020, the China Securities Regulatory Commission lifted restrictions on foreign ownership of fund management companies. Seizing the opportunity, Manulife planned a full acquisition, which was approved in November 2022. This made Manulife Fund the first joint venture public fund in China to become wholly foreign-owned. On the private equity front, we established Manulife Investment (Shanghai) Limited in 2017, launching a subsidiary that gained QDLP pilot status in 2018.

For me, November 18, 2022, when the acquisition was approved, remains unforgettable. Witnessing and participating in the transformation of a top-tier domestic public fund management team into a wholly foreign-owned enterprise was a milestone. Today, Manulife Fund excels in crafting and executing our wealth and asset management strategy in China.

Jiemian News: What does the Chinese market mean to Manulife Financial, and what opportunities and challenges does it present?

Ding: The Chinese market holds immense strategic value for Manulife’s global operations. It’s not just a land of opportunities but one that demands long-term investment and in-depth engagement. As the world’s second-largest stock and bond market, China offers unparalleled wealth management opportunities.

In recent years, China has accelerated its financial market opening and optimized its investment environment, granting foreign institutions greater market access. We hope for continued policy support to leverage global practices and contribute to the high-quality development of China’s asset management industry.

Jiemian News: "Expanding high-level opening-up" is a key theme in China’s 2024 Government Work Report. From a foreign institution’s perspective, how do you interpret this term? What steps should China take to attract more international investors?

Ding: Drawing from the Government Work Report and Manulife’s diversified presence in China, we understand "high-level opening-up" as aligning with advanced international trade and economic standards, steadily expanding institutional openness, and fostering synergy between domestic and global markets. This approach is conducive to mutual benefits and global competitiveness.

China has made strides in easing foreign strategic investments in listed companies, enhancing the foreign investment environment, and encouraging foreign investors to establish regional headquarters. Continued reforms, such as broadening cross-border market connectivity mechanisms and supporting pension finance policies, will further enhance China’s appeal to global investors.

Manulife remains optimistic about China’s prospects, reaffirming our commitment to expand here. We look forward to more initiatives that drive high-quality capital market development and deepen international integration.

Jiemian News: How does the increasing presence of foreign financial institutions impact China’s financial sector?

Ding: The growing presence of foreign financial institutions is reshaping China’s financial industry in meaningful ways. As capital markets continue to open, foreign asset managers bring diverse investor profiles, which stimulate innovation across investment models, strategies, and risk management practices. This, in turn, enhances the global competitiveness of China’s financial sector while fostering valuable partnerships with international institutions, allowing the Chinese fund industry to draw on advanced global expertise.

Additionally, foreign asset managers are broadening the financial product landscape by leveraging their cross-border capabilities. Through avenues such as QDII and Bond Connect, they offer offshore fixed-income products and optimize asset allocation strategies. These contributions cater to the evolving needs of local investors and enrich the market’s overall diversity.

The deeper integration of foreign institutions will align China’s financial markets with international standards, attracting more global capital and advancing the internationalization of the Chinese Yuan.

Jiemian News: Where do Manulife’s current China operations stand, and what are your future strategies?

Ding: With over US$1.1 trillion (7.97 trillion yuan) in assets under management, Manulife Financial has a diverse presence in China, spanning insurance, public funds, private equity, and alternative investments. The financial sector’s opening-up since 2018 has encouraged us to explore expanded opportunities.

As Manulife’s wholly owned asset management platform in China, Manulife Fund focuses on active equity, wealth substitute products, global asset allocation solutions, and pension strategies. As one of the world’s leading pension managers, we see tremendous potential in wealth and pension investments in China. Our strategy emphasizes global experience, robust organizational structures, and a unique corporate culture to drive sustainable growth.

Jiemian News: How has the transition to a wholly foreign-owned public fund impacted Manulife Fund’s operations, and how do you leverage global resources to serve local clients?

Ding: Since the acquisition, Manulife Fund has entered a new growth phase. We’ve deepened communication with global investment experts, established regular knowledge-sharing mechanisms, and enhanced our investment platform. This has diversified our active equity strategies and optimized our research and operational processes. Our product portfolio includes bond funds, FOFs, quantitative funds, and QDII products, catering to a wide range of investor needs.

Innovation remains our core focus. For example, in May, we launched China’s first green inclusive finance bond index fund, advancing sustainable investment. Our global asset allocation FOFs and India QDII funds further reflect our unique global perspective.

With Manulife’s global resources and expertise, we continue to innovate and expand rapidly. As of September 2024, our assets under management exceeded ¥100 billion, marking a 30 percent growth since the acquisition’s completion at the end of 2022.