The firm is looking to tap into the $1.51 trillion Chinese private fund market.

The Asset Management Association of China has granted the registration global asset manager Invesco's wholly-foreign owned enterprise in Shanghai to become a private fund manager in the country. This comes after this publication reported in September that UBS aimed to tap into the RMB10 trillion ($1.51 trillion) Chinese private fund market. 

The registration enables Invesco to launch private securities investment funds in China. These will invest in the country's domestic securities market and to accept investment from qualified Chinese investors into such private securities investment funds, the firm said in a statement.

​​Although foreign investors have been allowed to launch mutual funds in China through minority-owned local ventures, the government has only recently given them full access to the private fund market, which targets institutions and wealthy individuals. Such moves are designed to open up the Asian country's capital markets.

Invesco set up its Shanghai WFOE in April 2017. The Shanghai-based team comprises investment and sales professionals as well as operations staff with local and global expertise. The WFOE team intends to provide differentiated products and a "superior" investment experience to domestic Chinese clients, the firm said.

"This registration is a key milestone in the evolution of our Asia business," said Andrew Lo, senior managing director and head of Asia-Pacific at Invesco. "The private fund manager registration allows us the ability to manage and distribute a wide range of unique investment offerings to China's vast network of private fund investors. The WFOE platform is an ideal complement to our current operations in China and will enhance our ability to deliver investment solutions that meet our clients' needs. I am proud of the platform we have built for investors across Asia and especially in China, and am confident that Invesco will be a leading and competitive manager for onshore qualified Chinese investors.  

Lo added: "The opportunity to contribute directly to the development of the domestic capital markets is truly exciting.  Invesco was an early entrant in the China market and has participated in its growth.  We are committed to bringing a new diversity of differentiated investment offerings to the onshore Chinese market."

Invesco has had a presence in Asia since 1962, and today manages over $92 billion on behalf of clients in the Asia-Pacific region. The company launched its first offshore Chinese equity fund in 1992, and established the first Sino-American asset management joint venture with Great Wall Securities in 2003.