Written by Xie Yu and Selena Li
HONG KONG (Reuters) – British insurance company and asset manager Legal & General has shelved plans to obtain a license to operate in China and cut its headcount in the country by more than half, two people familiar with the matter said. , joins a growing list of global financial companies to downsize in uncertain markets.
Legal & General (L&G) was planning to apply for a QDLP (Qualified Domestic Limited Partner) license, which allows foreign companies to sell offshore products to Chinese investors, as part of its asset management business. This was revealed by a person with direct knowledge of the people involved. problem.
The company, which manages assets worth 1.2 trillion pounds ($1.53 trillion) around the world, has now shelved those plans and last month reduced the size of its local team from around 10 to 2. He added that the number of people was reduced.
The remaining two companies will focus on the company's existing business of managing offshore assets for Chinese institutional investors, said the people, who asked not to be named because they were not authorized to speak to the media.
L&G would not comment on shelving licenses or job cuts when contacted by Reuters, but said China remained a “significant long-term and significant market opportunity for asset management.”
“For this reason, we have chosen to maintain our presence through representative offices and maintain a small team,” he said, adding that the company will continue to invest in international markets as a way to grow existing Chinese clients. He added that he will continue to actively explore.
The move by L&G, one of Britain's biggest insurers, adds to the growing list of global financial companies curbing their China business ambitions amid market and economic uncertainty and geopolitical tensions. .
(Reporting by Xie Yu, Selena Li; Editing by Sumeet Chatterjee, Muralikumar Anantharaman)
