Vanguard's local market entry strengthens mutual fund sector

US-based investment company Vanguard Group Inc launched its wholly foreign-owned enterprise in the China (Shanghai) Free Trade Zone on Thursday.

The world's largest mutual fund firm in terms of assets under management is the latest entrant to China's capital market through the WFOE route. Its entry suggests measures to open up the market may be paying off.

The new entity enables Vanguard, which has assets worth $4.2 trillion under its management, to bring its investment philosophy to China's vast number of investors, the company said.