By Xie Yu and Selena Li
HONG KONG (Reuters) – British insurer and asset manager Legal & General has shelved a plan to obtain a China business license and more than halved onshore headcount, two sources said, joining a list of global financial firms scaling back in an uncertain market.
Legal & General (L&G) had been planning to apply for a QDLP (Qualified Domestic Limited Partner) license that allows foreign firms to sell offshore products to Chinese investors as part of its asset management business push, said the sources, who had direct knowledge of the matter.
The company, with 1.2 trillion pounds ($1.53 trillion) worth of assets under management globally, has shelved that plan now and, as a result, last month cut its local team size to two people from around 10, they added.
The remaining two will focus on the firm’s existing business of managing Chinese institutional investors’ offshore assets, said the sources, who declined to be named as they were not authorised to speak to the media.
L&G did not comment on the business license shelving or the job cuts when Reuters sought a response but said that China remained “an important and large market opportunity for asset management over the long term”.
“This is why we are choosing to maintain a presence through our representative office and to retain a small team,” it said, adding the firm continued to actively seek ways to grow existing Chinese clients investing in international markets.
The move by L&G, one of UK’s largest insurers, adds to an expanding list of global financial firms reining in their China business ambitions amid market and economic uncertainties, and geopolitical tensions.
(Reporting by Xie Yu and Selena Li; Editing by Sumeet Chatterjee and Muralikumar Anantharaman)
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