Another major international financial company has shelved its plans to operate in China. Uncertain business environmentsays the source.
British insurance giant and asset manager Legal & General has cut its headcount in China by half as it postpones plans to seek a license to operate, two sources with direct knowledge of the matter said. .
Legal and General (L&G) As part of its push to promote its asset management business, the company was planning to apply for a QDLP (qualified domestic limited partner) license, which would allow foreign companies to sell offshore products to Chinese investors.
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The company, which manages assets worth 1.2 trillion pounds ($1.53 trillion) worldwide, has now shelved those plans. It added that as a result, it had reduced the size of its local team from about 10 people to two in the last month.
The remaining two employees will focus on the company's existing business of managing offshore assets for Chinese institutional investors, the people said, asking not to be identified because they were not authorized to speak to the media.
L&G would not comment on the shelving of licenses or job cuts when contacted by Reuters, but said China remained a “significant and significant market opportunity for asset management over the long term.”
“This is why we have chosen to maintain our presence through representative offices and maintain a small team,” the company said, adding that the company will continue to support existing Chinese clients investing in international markets. He added that he will continue to actively seek ways to grow.
The move by L&G, one of Britain's biggest insurers, adds to the growing list of global financial companies reining in their China business ambitions amid market and economic uncertainty. geopolitical tensions.
- Reuters with additional editing by Jim Pollard
