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The World's Largest Foreign-owned Enterprise has Entered China

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More and more enterprises go abroad and are gaining a foothold in the international community along with the gradual accelerating of the global integration, at the same time, many well-known enterprises overseas have also come to China to seek better cooperation.

On May 25, Vanguard Group, the world's largest public offering fund company announced the establishment of a wholly foreign-owned enterprise in the Shanghai free trade zone. As a pioneer of low-cost investment, Vanguard's impact of entering into a market will lead to a "Vanguard Effect", leading to a reduction in industry rates. And for the future business in China, executives said the Vanguard group, will continue to sustain the ideas of low cost, pluralism and the long-term investment, to ensure that the rate of the products provided in the future will be lower than average.

Xiaodong Lin, as the general manager of the Vanguard, president of Vanguard in China and international business management committee member, he said: by 2025, the assets under management of China's asset management industry will reach $16 trillion (about 100 trillion yuan), pension asset management scale will reach $3 trillion (about 19 trillion yuan), the market of China's public offering has a huge growth potential which also gives spaces to the Vanguard.

In contrast with other investment management company, the Vanguard group is neither a listed company, nor private shareholders holding, but a group that was held by public funds, while the funds was held by the investors. This unique shareholding structure aligns the Vanguard group with the interests of investors, which also means that Vanguard group can improve its investment returns by lowering the fund rate, giving profits to fund investors. In the United States, the Vanguard group reduced its own U.S. fund assets weighted average rate from 0.68% in 1975 to 0.12% at now – which is less than one fifth of the weighted average rate of 0.62% of the American fund industry assets at now. And its low-cost strategy has expanded to markets such as Australia, Japan, Europe, Canada, Singapore, Hong Kong and China. In fact, when Vanguard moves into a new market, other companies will follow Vanguard to lower their fees to compete with Vanguard, which is called the "Vanguard Effect".

According to the law of foreign-capital enterprises, the establishment of foreign-funded enterprises WFOE China must be conducive to the development of Chinese economy and should meet at least one of the following conditions, namely, the adoption of international advanced technology and equipment; All or most of the products are exported. The organization form of foreign enterprise is generally limited liability company, also can say is one person limited company. But not including branches of foreign companies, enterprises, other economic organizations that is located in China, such as branch company,representative offices, etc. But to open a company is a not easy thing, no matter from its establishment or to its later operation. In recent four years, BC Partners has been committed to the foreign enterprise service, with a business consulting service team composed of senior professionals in more than 50 foreign companies in the field of foreign company registration, overseas investment, fiscal and taxation, to provide customers with the best quality business consulting services. BC Partners takes global standard operation and internationalization to gain every customer's satisfaction and help you to succeed.

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