The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Asia relocation: In the Vanguard

Does the investment manager’s decision to shutter its Hong Kong office and relocate to Shanghai matter?

shanghai-780

Shanghai skyline



At one level, it can be argued – no, not really. The Pennsylvania-based group has long struggled to break into Hong Kong’s retail market. In a statement, Vanguard said it would, after an "extensive review", wind down its local operations – a process that will take up to two years – and exit its exchange-traded fund business in the city.

In a filing to the Hong Kong Stock Exchange on August 26, Vanguard set out its position using some carefully crafted – and exceedingly bland – words.

The decision, Vanguard said, would let it expand into “international markets that offer the ability to directly reach individual investors... combined with access to the required scale and industry dynamics” that make the firm’s low-cost model work.

Or to put it another way, sorry Hong Kong, I’m afraid you just don’t cut it any more.

Growth potential

It was careful not to burn any bridges in the embattled former British colony. “[T]his move is not to suggest that we do not see growth potential in Hong Kong – quite the contrary,” Peter Zhang, a Shanghai spokesman at Vanguard, tells Euromoney.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree