Neuberger Berman has received approval from the China Securities Regulatory Commission to manage local-currency mutual funds for domestic Chinese clients.

This makes the New York City-based asset manager the second global institution after BlackRock to receive final approval to launch a wholly owned, newly established mutual fund business in the country.

“Our long-term investment performance and ESG leadership were at the core of our mutual fund company application and will enable us to be a positive force for Chinese investors, issuers, markets and the global community,” says Patrick Liu, chief executive officer of Neuberger Berman Fund Management (China) Limited.

“China is the world’s second largest capital market and the country’s commitment to opening up to high-quality financial services will bring significant opportunities for local investors.”

Neuberger Berman has been expanding its Shanghai-based professional team. Michelle Wei, who joined in October, has been driving the firm’s strategic planning. Starting in 2023, Wei will assume the role of chief investment officer, equities, spearheading the development of investment strategy, managing the equity research team, providing supervision to the investment process, and overseeing asset allocation and risk management across equity portfolios.

The firm has also made other senior appointments in China and other parts of Asia. Charles Nguyen, managing director, public equities ESG investing, will be relocating from New York to Shanghai to lead the firm’s ESG efforts across the region. In July 2022, the firm appointed Edward Fang as head of ESG research. The local platform also includes fixed income and quantitative strategies led by long-tenured portfolio managers Peter Ru and Ping Zhou, respectively.