The partnership aims to draw on the respective strengths of both firms.

State Street Global Advisors has signed an agreement with E Fund Management, a Chinese asset manager, to jointly explore strategic opportunities across global markets, including China's expanding fund management industry. The move is part of a trend of foreign firms entering the China market through a variety of channels.

The partnership will draw on the respective strengths of both firms. By facilitating the exchange of information on product development and innovation, both firms' ability to gain and strengthen access to both local and global investment markets could be enhanced, SSGA said in a statement. 

“E Fund has exhibited strong investment acumen, innovative ideas as well as a growing distribution network, which makes it a solid partner with strong local perspectives to pair with our global network to help clients realise their investment goals, even in the most demanding investment environments,” said Lochiel Crafter, executive vice president and head of Asia-Pacific at SSGA.

Commenting on the Memorandum of Understanding, Sau Kwan, president of E Fund Management, said: “As a global pioneer in indexing, smart beta solutions and award-winning active strategies, SSGA is one of the few asset managers that have the heritage, breadth and depth across markets, asset classes and approaches. We are delighted to forge this partnership, one that could benefit not only both our firms but also global investors and the industry.”

As of 31 December 2016, SSGA had $2.4 trillion in assets under management. E Fund Management had more than $1.4 billion in AuM as of the same date. 

A few days ago, Fidelity International's wholly foreign-owned enterprise in Shanghai said it has registered with the Asset Management Association of China as a private fund manager, obtaining what it claims to be the first private fund management licence in China.