What are Schroders’ latest business developments in China in recent years?

In recent years, Schroders has continued to deepen and expand its diversified business in the China market. Guided by our investment philosophy of "the Active Edge," we leverage over 220 years of global expertise, together with local market insights, to capture a wide range of investment opportunities and maximise the benefits of active management. We are committed to providing Chinese clients with comprehensive services covering four core business: Public Markets, Solutions, Wealth Management and Schroders Capital, which focuses on private markets including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.

In terms of local partnerships, we have established long-term strategic relationships with leading Chinese financial institutions such as Bank of Communications, jointly founding BOCOM Schroders Fund Management Co., Ltd. and Schroder BOCOM Wealth Management Co., Ltd. Such collaborations not only enhance Schroders' competitiveness in the market but also promote exchanges between Chinese and international financial institutions.

For private market investments, Schroders Capital continues to expand into sectors such as new energy infrastructure, private equity, and real estate, driving innovation and sustainable development. For example, through managing clean energy funds in partnership with international companies such as Apple, we actively support the green transformation of Chinese enterprises and offer a broader range of high-quality investment options to both domestic and international clients.

Furthermore, we are advancing our onshore, outbound, and inbound businesses in parallel, supporting Chinese investors with global asset allocation while also attracting overseas capital into China's market. This approach enables us to meet the investment needs of a diverse client base, including institutions, retail investors, high-net-worth individuals, and pension funds.

How do these businesses developments align with China’s financial opening-up policies?

Schroders has always actively responded to and supported China’s financial open-up policies. In recent years, we have closely followed the pace of opening up in China's financial markets, making full use of a range of cross-border investment mechanisms such as QDII, QDLP, QFII, QFLP, Stock Connect, London–Shanghai Stock Connect and Bond Connect, to continuously deepen our business development in China and achieve shared growth with the Chinese market.

As one of the first foreign asset managers to provide global investment solutions to Chinese investors via the QDII channel, Schroders launched its first Asia Multi-Asset Income fund in 2017 under the Mainland-Hong Kong Mutual Recognition of Funds scheme, offering investors a diversified range of global allocation options.

In terms of participation in the domestic market, we are among the first foreign asset managers to establish wholly-owned mutual fund companies, joint-venture mutual fund companies, and joint-venture wealth management companies in China. We actively explore and promote diversified business models, introducing international best practices and expertise in asset management to the industry. Meanwhile, we have established deep collaborative relationships with local financial institutions, continuously enhancing our client services and product range in order to adapt to the increasingly open and innovative financial ecosystem.

In light of recent developments such as renewed UK–China dialogue and the outcomes of the Economic and Financial Dialogue, what are Schroders’ current strategic priorities and forward-looking plans for its business in China?

In recent years, amid changes in trade policies and the introduction of new regulatory measures, Schroders has consistently maintained a flexible and forward-looking strategic approach. We closely monitor policy developments and promptly evaluate and adjust our business priorities in China. For the corporate sector, we are pleased to see high-level China-UK dialogues and welcome the UK government’s positive stance towards deepening cooperation with China. In January of 2025, our Group Chief Executive, Richard Oldfield, was honoured to join the UK delegation for the UK-China Economic and Financial Dialogue, where he met with Chinese Vice Premier, He Lifeng and witnessed first-hand the further deepening of China-UK financial cooperation

In the current policy environment, we pay attention to policy innovation in the wealth management sector, closely following progress on the "UK-China Wealth Management Connect" initiative, and look forward to actively participating in relevant pilot and cooperative projects when the time is right.

Regarding the pension market, China welcomes foreign wealth management firms' participation in the pension finance industry. Schroders draws on its extensive experience in pension management globally, especially in Hong Kong, to support the sustainable development of China’s pension market.

In addition, as the Group’s private markets investment arm, Schroders Capital’s new energy infrastructure team focuses on renewable energy investments, managing and operating a variety of renewable assets—such as wind and solar—in the UK, Europe, and the United States. We have now begun introducing institutional capital into renewable projects in China. As both China and the UK encourage deeper cooperation in green finance and investment, we are also helping introduce more high-quality green assets and long-term, stable income options to Chinese institutional investors.

Overall, Schroders will continue to deepen collaboration with stakeholders across both China and the UK, actively support and facilitate the implementation of relevant policies, and flexibly adjust and optimise our strategic deployment in China to drive shared growth with the Chinese financial market.

Could you please comment on the markets you operate in and the opportunities you see there at the moment?  

As the world’s second-largest economy, China possesses a vast market scale and robust growth momentum. With the accumulation of household wealth and increasingly diverse asset allocation needs, the asset management industry is experiencing a historic opportunity.

As a foreign institution, in the immediate future, we focus on China’s further financial market opening policies, such as cross-border investment mechanisms like QDII and QFLP, as well as the relaxation of market access restrictions. These measures provide foreign institutions with deeper access channels and opportunities to participate in the Chinese market. In the longer term, China’s vast market potential, steady economic growth outlook, and the growing demand for wealth management give us strong confidence in our sustainable development in China.

From an investment perspective, Schroders has significant strength in both public and private markets, thanks to our extensive global experience and rigorous investment methodologies. In public markets, active management is at the core of our approach: we aim to create value for our clients by conducting in-depth research and responding flexibly to market changes, seizing opportunities even in complex environments to help clients balance returns and resilience.

In private markets, opportunities in infrastructure, private equity, and real estate are particularly compelling. Schroders Capital, as the specialist private markets investment arm of Schroders Group, is dedicated to offering a broad range of private investment opportunities, portfolio construction modules, and tailored strategies. By combining direct investment capabilities and broader solutions across private asset classes—including hybrid funds and customised mandates—Schroders Capital strives to deliver excellent risk-adjusted returns to investors.

Specifically, Schroders Capital’s business focuses on three main sectors. In infrastructure investment, the team is actively developing its expertise in China’s renewable energy infrastructure sector and is committed to providing specialised services for investors seeking low-risk and stable cashflows. In private equity investment, the team has been deeply engaged in the Chinese market for more than 25 years, actively capturing a wide range of opportunities in both USD and RMB markets, and providing locally relevant solutions within a global perspective. In real estate investment, the Asia team has offices in Hong Kong, Shanghai, Singapore, and Tokyo; in the domestic market, it is dedicated to offering investors solutions for both local and cross-border real estate investments.

In what ways has CBBC supported your growth in China?

The China-Britain Business Council (CBBC) is one of the key partners in supporting our growth in China. Leveraging its extensive local network and in-depth expertise, CBBC has provided us with an additional valuable platform to engage with government bodies, regulatory authorities, industry peers, and potential clients. Its profound insights into policy developments and market trends have also helped us navigate the ever-evolving business environment.

It is worth highlighting that CBBC’s diverse range of events has not only enhanced Schroders’ brand presence in China but also deepened our relationships with existing clients and expanded our network of contacts and prospective clients. We are also very grateful for CBBC’s support in facilitating high-level dialogues and market promotion, which has created favourable conditions for Schroders’ steady growth in China.

The UK and China have both committed to Net Zero targets, how can organizations like Schroders help support the UK and China in meeting their targets? What work is being done on standards to contribute to these efforts and build trust in green financing?

Both the United Kingdom and China have made net-zero emissions commitments. As a leading global asset management firm, Schroders has always regarded sustainability and green finance as core strategies and actively supports the dual-carbon targets of both countries. Our efforts are reflected in several key areas:

First, Schroders actively promotes innovation in sustainable investing and the development of green financial products. In the UK, we have successfully allocated pension assets to renewable energy infrastructure, achieving both decarbonisation goals and long-term, stable returns. More recently, we have begun managing funds invested in Chinese renewable energy infrastructure, helping our clients achieve emissions targets through high-quality clean power generation. This further aligns China’s pension system with green financial policies and delivers sustainable social benefits.

Second, we place great emphasis on the development and improvement of ESG (Environmental, Social and Governance) standards. Schroders continually refines its own assessment models based on global ESG best practices, while also actively participating in the establishment of both international and Chinese industry standards. For example, Schroders has been invited to join the United Nations Principles for Responsible Investment (PRI) roundtable discussions in China and serves as an ESG expert for the Insurance Asset Management Association of China (IAMAC). Through these platforms, we promote greater transparency and scientific rigour in ESG disclosures and green project evaluations, thereby building trust in green finance across the wider market.

Finally, Schroders believes that active engagement is central to sustainable investment. In the Chinese market, we work closely with companies through continuous dialogue and a long-term partnership approach, guiding more enterprises to enhance their green governance and sustainable performance. This process not only raises the ESG quality of our investment projects but also sets higher standards for green finance in related industries.

Looking ahead, we will continue to deepen UK-China cooperation in sustainable development, further drive innovation in green finance, facilitate the convergence and transparency of industry standards, and support both countries in achieving climate change and social sustainability objectives.