CHINESE FUND MANAGEMENT COMPANY PLANS TO INVEST IN INDIA


The growing economic engagements between India and china over the last decade is mainly confined to the trade in goods. However, the recent visit of our Hon’ble Prime Minister, Shri Narendra Modi to China has paved the way for more economic engagements between India and China. Many areas especially in service industries still remain to be explored. Financial sector is one such area which provides immense opportunities for cooperation yet remains unexplored till date. As India continues to improve the ease of foreign portfolio investors to enter the Indian market, lot of Chinese Financial companies have shown keen interest to explore investing in India.

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Drawing from this background, ICEC Council organized the visit of a high level delegation from Bosera Funds Management Co. Limited, led by thei Chairman. The objective was to provide them information on the secondary market investment in India. Bosera is one of the largest fund houses in China, with its pension fund assets under management ranked in top tier. Authorized by the National Council of Social Security Fund, Bosera manages part of the National Social Security Fund portfolios. In addition, Bosera also provides investment management services to several corporate pension funds and segregated accounts. The visit was organized in association with Capvision Partners (Shanghai) Co. Ltd., a leading financial consulting firm based in Shanghai.

Spanning two cities, the delegation met with relevant organizations towards getting a holistic sense of the investment scenario in India. The journey started with a meeting with Mr. Ashish Kumar Chauhan, MD & CEO, Bombay Stock Exchange. He spoke about BSE functions and its different products they can trade in along with the guidelines & regulatory policies for FPI in India. Armed with this knowledge ICEC then organized interactions with couple of private banks (HDFC & Yes Bank) and with ICBC & Haitong Securities (Chinese Securities Company based in Mumbai). These were very interactive sessions with lots of questions on registration, tax, documentation, creating of India Fund, repatriation of funds etc.
In Delhi, the second leg of the trip, the delegation met with Department of Economic Affairs, Ministry of Finance; NITI Aayog; Indian Council for Research on International Economic Relations (ICRIER) & Invest India. Through these meetings, the delegation got an overview of the investment climate in India and a sense of the big ticket reforms the new government has initiated.

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The last meeting of the trip was with Yatra, the leading online travel portal where the delegation learn about the online travel market in India, the main players, their strengths, future growth projections etc.

The deliberations and discussions held during the trip were in-depth and focused. The delegation is now in the process of reviewing all the information and knowledge they received during this trip and we hope that this will start Chinese investments in India’s secondary markets.