US asset management giant becomes China’s first foreign AMC

2020 “Yinhua Fund Cup” Sina bank financial planner competition, hot registration. From now on to September 7, you will receive free gift packages worth more than 700 yuan from Guan Qingyou, Luo Yuanshang, Chen Kaifeng and Jian Qi. < / P > < p > original title: “Wall Street vultures” coming! Trillion US asset management giant completes private placement filing, becoming China’s first foreign AMC! Eight non-performing asset packages have been acquired < / P > < p > according to the website of China Fund Industry Association, Oaktree (Beijing) Investment Management Co., Ltd. has recently completed the filing of private fund manager, which is a wholly-owned subsidiary of oak capital (Hong Kong) Co., Ltd. in the mainland. As the world’s largest non-performing asset investment institution, oak capital is known as “king of distressed asset investment” and “Wall Street vulture” in the investment field. Howard marks, CO chairman and core founder of oak capital, is hardly unknown in the investment circle. His investment memorandum and the most important thing to invest are also the books that investors must read. < / P > < p > it is worth noting that Oaktree (Beijing) Investment Management Co., Ltd. completed its registration in Beijing half a year ago. Now, the company has successfully completed the registration of CFA private placement, and will officially issue fund products in the next step. This also means that China’s asset management market (AMC) market will usher in the first foreign institution. < / P > < p > in its latest second quarter credit performance report, oak capital pointed out that it believed caution was needed, given the strong appreciation in debt and stock markets in the second quarter. In some re opened countries and the United States, there has been an alarming increase in epidemic data. In some regions, lock-in measures have been restored. Many companies have filed for bankruptcy and are considering permanent downsizing of operations. < / P > < p > “the momentum of panic may lead to a large outflow of retail mutual funds and ETF accounts. Independent of the pandemic, with November approaching, the US election has brought more uncertainty to fiscal and monetary policy. ” In fact, oak capital established oak overseas investment fund management (Shanghai) Co., Ltd. in Shanghai as early as November 2013, and completed the registration as other private investment fund managers in China Fund Industry Association in May 2014. It is also 100% owned by Oak capital (Xianggang) Co., Ltd., with a registered capital of 12.276 million yuan. Up to now, oak overseas investment fund management (Shanghai) Co., Ltd. has issued two RMB funds. However, oak capital only settled in Shanghai as one of the first batch of qdlp (qualified domestic limited partners) pilot foreign institutions in China at that time. The above qdlp pilot was more cautious in the initial stage, and the total amount of fund raised by the management agencies obtained from the pilot was limited to a low level of about US $5 billion. < / P > < p > August 18, 2020, Oaktree (Beijing) Investment Management Co., Ltd. has completed the registration with China Fund Industry Association and registered as the manager of other types of foreign-owned private investment funds. The registered capital is US $4548803, and the legal representative is Meng Yuanyuan. It is 100% owned by Oak capital (Hong Kong) Co., Ltd., Oaktree (Beijing) Investment Management Co., Ltd. and oak Overseas Investment Fund Management Co., Ltd. (Shanghai) ）Ltd. is a related party. According to the Beijing local financial supervision and Administration Bureau, Oaktree (Beijing) Investment Management Co., Ltd. completed industrial and commercial registration in Beijing on February 17 this year. Oaktree (Beijing) Investment Management Co., Ltd. was established on February 14, according to the filing data of China Fund Industry Association. It is understood that the settlement of oak capital in Beijing is under the background of the economic and trade agreement between China and the United States. On January 15, 2020, China and the United States signed the first phase of the economic and trade agreement between the government of the people’s Republic of China and the government of the United States of America in Washington, D.C. According to the agreement, China and the United States will promote more opportunities in financial asset management (non-performing debt) services. The specific contents include: the United States continues to allow Chinese financial institutions to engage in the acquisition and disposal of non-performing loans in the United States; China allows us financial institutions to apply for asset management company licenses from provincial licenses, so that they can directly purchase from Chinese banks Good loans. < / P > < p > that is to say, the last time oak capital settled in Shanghai was only a qdlp pilot project, and there were limitations on the scale of the products to be issued. Now, settled in Beijing, the next step will be to apply for provincial AMC license, and in the future, it will be possible to purchase non-performing assets directly from banks. As the world’s largest non-performing asset investment institution, oak capital was established in 1995, headquartered in Los Angeles, with total assets under management of more than $120 billion, and was listed on the New York Stock Exchange in 2012. < p > < p > since the mid-1980s, Howard Max and Bruce takashu, the founders, have jointly invested in distressed debt, private equity, real estate, direct lending, high-yield bonds and convertible securities investment in Western trust company. Investors in oak capital include pension plans, insurance companies, endowment funds, foundations and sovereign wealth funds. Clients include 69 of the 100 largest pension plans in the United States, more than 400 companies worldwide, 39 of the 50 major U.S. state retirement plans, more than 320 global endowments and foundations, and more than 15 sovereign wealth funds. < p > < p > among the credit assets, the non-performing assets held by Oak capital amounted to US $19.233 billion, ranking first in all sub categories; followed by high-yield bonds with a holding scale of US $13.487 billion; and the holding scale of senior loans also exceeded US $10 billion. In 2013, oak capital, as one of the first batch of qdlp (qualified domestic limited partners), officially set foot in China’s non-performing asset market and has invested in China’s AMC market for many years. < p > < p > the largest AMC in China is the four major state-owned asset management companies established in the late 1990s, namely Huarong, Changcheng, Dongfang and Xinda, which receive the non-performing assets separated from ICBC, ABC, BOC and CCB respectively. < p > < p > according to the previous report of Damo finance and economics, after the local government accelerated the disposal of non-performing assets, the provincial AMC also appeared. By the end of 2019, there were 53 local AMCs approved in China. In addition, AMC (also known as AIC), which is represented by the five major banks, has set up a debt to equity subsidiary to carry out non-performing asset business. There is a huge non-performing asset market in China. The disposal cycle of non-performing assets is long, the risk is high and the specialty is high. Foreign capital often cooperates with the four AMCs in the disposal of non-performing assets. Among them, oak capital is one of the representative institutions. In 2015, oak capital completed the first acquisition of non-performing assets in China. As of October 2019, oak capital has acquired 8 non-performing asset packages in China. Due to

‘s successful prediction of the US technology stocks bubble in 2000 and the global financial crisis in 2008, oak capital and Howard Marx are renowned in the industry. Oak capital’s view of the market has also attracted much attention. < / P > < p > in its latest second quarter credit performance report, oak capital pointed out that it believed caution was needed, given the strong appreciation in debt and stock markets in the second quarter. There has been an alarming increase in epidemic data in some re opened countries and the United States, and lock-in measures have been restored in some areas. The company said it had seen outbreaks in some economies that had led to many companies filing for bankruptcy and seriously considering permanent downsizing. < / P > < p > oak capital expects that many industries will be under pressure and distress for years as companies reassess all aspects of their costs, including how they use real estate, where they hire employees, and how they distribute their products. The momentum of this panic could lead to a massive outflow of retail mutual funds and ETF accounts. Independent of the pandemic, as the US election approaches in November, the election has brought more uncertainty to fiscal and monetary policy. < / P > < p > in addition to the seemingly unlimited support of the U.S. government for financial markets, oak capital also saw progress in vaccine development and improved testing of covid-19 antigens and antibodies. These measures will help telecommuters get back to the office faster. “However, we believe it will be at least six to 12 months before a viable vaccine is approved for administration.” < / P > < p > looking into the future, oak capital expects further volatility in the market, and the focus of oak capital is still to build a credit portfolio with higher quality and more conservative positioning than before. Oak said it was mindful of protecting funds to act quickly when there was a buying opportunity. In the open market, continuing to phase out sectors that outperform expectations may face challenges if the recovery slows. < / P > < p > among private investments, oak said it was tracking a number of themes, including life science investment in life changing therapies that are likely to continue to grow regardless of economic activity. For enterprises whose demand is depressed, they may benefit quickly with the recovery of the economy.