China’s Hony Capital to set up mutual fund unit

Shanghai-registered Hony Yuanfang Fund Management, a wholly-owned subsidiary of the GP, has won approval from the China Securities Regulatory Commission to distribute and manage mutual fund products, with registered capital of RMB100 million ($15 million).

The regulator allowed brokerages, insurance firms and private fund managers to launch mutual fund products in 2013, with a view to widening the range of mutual fund platforms. Domestic PE managers such as Shenzhen Capital Group, JD Capital, and CSC Group, have since expanded into the space.

Hony's mutual fund unit will be run separately from its private equity division, CEO John Zhao (pictured) told local media. “The mutual fund team will make independent investment decisions, which shouldn’t be influenced by the private equity team. We will introduce a set of corporate rules and strengthen our monitoring systems to protect investors’ interests," he said.

Hony currently manages eight private equity funds and two mezzanine funds, with approximately $10 billion under management. The GP closed its latest PE vehicle – known as Hony Capital Fund VIII – at $2.7 billion in 2016.

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• Topics
• Greater China
• Regulation
• China
• Hony Capital
• GPs