Fidelity International has become the latest Western asset manager to apply to set up a mutual fund business in mainland China, aimed at retail investors.
Fidelity said the application for a mutual fund license was "an important milestone in our China strategy" and comes just over a month after China's securities regulator got rid of foreign ownership caps in the mutual fund sector.
The US firm said it would "continue to devote resources to expand our capabilities and develop more solutions" in China.
Quoted in the Financial Times=, managing director of Fidelity's Asia Pacific ex Japan business Rajeev Mittal said: "We look forward to providing Chinese investors with Fidelity's global expertise and proven China investment capabilities."
Fidelity currently sells private funds to largely institutional and high-net-worth investors.
The move comes after a number of its US counterparts have moved to do similar. BlackRock has agreed to form a majority-owned joint venture with China Construction Bank and Singapore's Temasek.
Elsewhere, J.P. Morgan owns 100% of China International Fund Management, which it bought for $1bn, while Vanguard has entered into a joint venture with Alibaba's Ant Financial.
According to Reuters, Neuberger Berman has also applied to set up a mutual fund business in China, with Schroder also having plans to do similar.