The index fund giant closed its Singapore operation in 2018. It said the departure from … Vanguard leaves Hong Kong The US asset manager will close its Hong Kong ETF business and move its regional HQ to Shanghai. Find Out More. Vanguard Group Inc. said it plans to end its onshore presence in Hong Kong and Japan to focus on individual investors in faster-growing parts of Asia, resulting in an undisclosed number of … Investment involves risks. Jln Duyung Komp Citra Permai Hong Kong is home to Vanguard's Asian headquarters. Movies. Access full content on the International Adviser site, access your saved articles, control email preferences and amend your account details, Firm has ‘future aspirations’ in Asia to serve Chinese individual investors in mainland China. You may use these HTML tags and attributes: Sign Up for International Adviser Daily Newsletter, Published by Last Word Media (UK) Limited, Fleet House, 1st Floor, 59-61 Clerkenwell Road, London, EC1M 5LA. Vanguard has operated in Hong Kong since 2013 and employs around 50 people in the city. With the closure of its Hong Kong and Japan offices, Vanguard will only have Asia-Pacific presences in Shanghai, Beijing and Melbourne in Australia. If you do nothing we'll assume that it's okay. This web page is published by Vanguard Investments Hong Kong Limited and this web page has not been reviewed by the Securities and Futures Commission in Hong Kong. Vanguard plans to wind down its Hong Kong operations, which primarily serve institutional clients, over the next six to 24 months, according to Peter Zhang, a Vanguard spokesman in Shanghai. VAT. Vanguard’s Australian presence extends from Brisbane across Melbourne and Perth to Sydney. Today, the company has presence across 9 … There is no intention to offer or sell products in countries or jurisdictions where such offer or sale would be unlawful under the relevant domestic law. Vanguard will transfer its Asian headquarters to Shanghai after announcing plans to exit its Hong Kong and Japan operations in a bid to focus on individual investors in mainland China. The firm is actively pursuing a mutual fund manager license which would enable it to offer public funds and serve retail investors directly, she added. However, the Hong Kong stock market will remain a critical component for Vanguard’s global diversified funds, and the Stock Connect and Bond Connect channels will provide them access to the A-share and China bond markets, the firm said. The Vanguard spokeswoman said the departure from Hong Kong had “absolutely no connection” to the controversial National Security Law imposed on the territory by Beijing this summer. Vanguard believes it can contribute to the development of the country’s public fund market, “similar to the way we helped transform the mutual fund market in the US over the past four decades”, said the spokeswoman. The ETF Connect, Wealth Management Connect and mutual recognition of funds (MRF) initiatives are “all positive developments, but these opportunities do not change the decision we have made”, she added. The world’s second largest asset manager has announced that it will close its Hong Kong office as part of its strategic shift to mainland China. Menu. Copyright (c) 2019. No. ISSN 2397-284X. 782 6511 15. U.S. asset manager Vanguard Group said on Wednesday it will close its operations in Hong Kong and Japan and exit Hong Kong exchange-traded funds, citing unsupportive "industry dynamics". Most of them will be laid off “over a period of time”, company spokesperson says. Company Reg. Vanguard, which manages $6 trillion globally, closed its Singapore office in 2018. China has demoted the director of the Hong Kong and Macau Affairs Office, the State Council said Thursday, following months of pro-democracy protests in the semi-autonomous city. Vanguard established its first Asia-Pacific office in Australia in 1996, followed by Tokyo in 2000, Singapore in 2003, Hong Kong in 2011, Beijing in 2014 and Shanghai in 2017. The move follows a … It has six ETFs listed on the local bourse, which collectively have $150.6m in assets, according to data from the Hong Kong Exchange. The firm will either appoint a manager of the ETF series and each sub-fund, or terminate them entirely. Vanguard Investments Hong Kong Limited (AYT820), a subsidiary of The Vanguard Group in the US, is licensed with the Securities and Futures Commission ("SFC"). International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high net worth clients. Investors should refer to the fund prospectus for further details, including the product features and risk factors. “We are maintaining sufficient crew to help wind down the office and serve clients through … No. “Unfortunately, from a distribution business standpoint, the current industry dynamics in Hong Kong – and Japan – are better suited to institutional investors and do not support the scale needed for us to operate the economic engine behind our low-cost, individual investor-orientated model,” said the spokeswoman. “We closed our Singapore office in 2018 as part of this evolution.”. For more insight on asset and wealth management in Asia, please click on www.fundselectorasia.com, Tags: China | Hong Kong | Investments | Vanguard, Your email address will not be published. As part of the closure, Vanguard intends to exit from its exchange-traded fund (ETF) operations in Hong Kong within the next 24 months, according to a filing to the Hong Kong Stock Exchange (HKSE). Required fields are marked *. “Our future aspirations in Asia are to serve Chinese individual investors in mainland China, so our Shanghai office will become our primary office in Asia,” a spokeswoman told our sister publication Fund Selector Asia. We use cookies to give you the best experience. It seems counterintuitive that Vanguard would have this many offices located around the world while also offering some of … “Vanguard continues to see Hong Kong as an important global financial centre and we cannot rule out the possibility of resuming services more aligned with our strategic priorities at a future date,” the spokeswoman added. Your email address will not be published. Vanguard, which held $ 5.7 billion in global assets at the end of April, shut down its Singapore office in 2018 while also cutting a fifth of its staff at the Hong Kong office. Hong Kong is home to Vanguard’s Asian headquarters. “In fact, the decision to close the Hong Kong office predated the national security law passage, and is consistent with our longer-term strategic shift from institutionally-focused businesses to products and services focused on retail investors,” she added. Vanguard Group, the company known for pioneering low-cost index funds, is trimming its operations in Asia by shutting shop in Hong Kong and Japan, the Wall Street Journal reports.. Vanguard Investments Hong Kong Limited (AYT820), a subsidiary of The Vanguard Group in the US, is licensed with the Securities and Futures Commission ("SFC"). Although some of the 50 staff in the Hong Kong office will relocate to Shanghai, the majority will be made redundant. In a separate statement, a spokesman confirmed that Vanguard would also close in Japan, and shift its primary office in Asia to Shanghai. All rights reserved. Your use of this site signifies that you accept our Terms and conditions of use | Privacy policy Vanguard Investments Hong Kong Limited. By using this website you acknowledge that your access to the information on this website is governed by the laws of Hong Kong. The … Vanguard’s locations in Asia are Hong Kong, Tokyo, and Sydney. Suite 1705-9 Wing on Centre 111 Connaught Road Central Hong Kong, Hong Kong Phone +86 852 3477 0000 Fax +86 852 2513 8380 Email thomas.lee@vanguardlogistics.com . Counterintuitive that Vanguard would have this many offices located around the vanguard hong kong office while also offering some of ….. Fund and Index-Tracking Collective Investment Schemes platforms own initiative and are responsible for compliance with applicable local laws and.. In the Hong Kong decision seems to be motivated mostly by the laws of Hong Kong.. 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