Huaan and HFT Investment to merge to meet license caps
Chinese fund managers Huaan and HFT Investment plan to merge to comply with regulatory caps. The move follows the recent union of their parent companies.
Two prominent mutual fund managers in China are reportedly set to merge as their parent company moves to comply with local regulatory requirements. Huaan Fund Management Co and its smaller peer, HFT Investment Management Co, are expected to consolidate operations according to reports from the 21st Century Business Herald.
Both firms are currently under the control of Guotai Haitong Securities Co, a financial giant formed last year through the merger of Guotai Junan Securities and Haitong Securities. The proposed consolidation is primarily driven by regulatory caps that prohibit a single company from holding controlling stakes in more than one mutual fund manager.
