The asset management giant Vanguard Group Inc. has announced that it will close the remaining business in China after it started to withdraw from the world’s second largest economy two years ago.
Bloomberg reported by citing people familiar with the matter that the investment company had notified the Chinese government to shut down its unit in Shanghai and will abandon a $3.9 trillion fund market. This includes the company leaving a joint venture with Jack Ma’s Ant Group as well.
Vanguard owns a 49% stake in this JV. Meanwhile, the source said that Ant is considering purchasing all stake from Vanguard.
Vanguard saw shrinking profit amid expansion of its rival BlackRock and Fidelity in recent years.
Fidelity and Neuberger Berman Group recently joined BlackRock to launch onshore funds through new wholly-owned units, while Manulife Financial Corp., JPMorgan Chase & Co. and Morgan Stanley received approvals to buy out local partners to gain full control of existing ventures.
