Switch to joint venture fund identity, what's the next step for this bank-affiliated public fund?

How can AI and foreign shareholders help strengthen the rights and interests business at Shanghai Silver Fund?

Cailian Press, March 19 — (Reporter Wu Yuqi) Another bank-affiliated public fund has completed its transition to a Sino-foreign joint venture structure. Recently, the approval was granted for Shanghai Silver Fund’s change of shareholders holding over 5%. Santander Investment Holdings of Spain legally acquired a 20% stake in Shanghai Silver Fund by investing 60 million RMB (representing 20% of registered capital). Shanghai Bank’s shareholding was reduced from 100% to 80%. With this equity change finalized, Shanghai Silver Fund has shifted from a wholly bank-owned public fund to a Sino-foreign joint venture fund company.

From the transaction itself, the market was not surprised. The transfer of Shanghai Silver Fund’s equity has been underway for years. Previously, Shanghai Bank publicly announced plans to transfer its stake, followed by a process involving potential buyers, regulatory feedback, and approval. Now, the final piece has fallen into place.

On the other hand, foreign institutions’ participation in China’s asset management market is no longer limited to establishing or controlling public funds alone. Instead, they are increasingly entering through stakes in mature platforms. For Shanghai Silver Fund, this introduction of a foreign shareholder does not mean immediate drastic changes. However, as a public fund with a focus on fixed income and backed by banking channels, its product offerings, business pace, and development path will likely be influenced by this new variable worth observing.

The equity change took years; Shanghai Silver Fund transforms into a Sino-foreign joint venture

According to regulatory approval documents, the China Securities Regulatory Commission (CSRC) approved Santander Investment Holdings to become a shareholder holding over 5% of Shanghai Silver Fund, with no objections to its acquisition of 60 million RMB in capital, corresponding to a 20% stake. With the approval, Shanghai Bank remains the controlling shareholder, while Santander Investment becomes a significant foreign investor.

Looking at the timeline, this equity adjustment was not a sudden decision but had been in planning for several years. As early as 2022, Shanghai Bank exercised its preemptive rights to buy the original stake. By 2023, Shanghai Bank had publicly announced plans to transfer 20% of its stake in Shanghai Silver Fund. In 2024, the relevant change application was formally submitted, and only in March this year was it approved, completing the process. From conception to implementation, the process was not short.

The cooperation foundation between the two parties already existed. Santander Investment is part of Santander Bank Group, which itself is an important shareholder of Shanghai Bank. Since 2014, they have signed multiple strategic cooperation agreements covering retail transformation, international business, cross-border payments, green finance, and technological innovation. In April 2025, they signed a new round of strategic cooperation agreements.

For some small and medium-sized fund companies, a change in ownership can mean strategic restructuring, team adjustments, or even rebranding. For the industry, the more interesting aspect is not whether foreign investment will quickly alter Shanghai Silver Fund’s operational route, but whether the entry of foreign shareholders will bring subtle but ongoing changes in governance, investment research framework, multi-asset allocation, and cross-border business perspectives.

An industry insider mentioned that many bank-affiliated public funds are now entering a “second curve” development stage. Relying solely on currency and bond products to grow is not difficult, but the real challenge is to maintain a stable foundation while gradually building capabilities in equities, indices, multi-assets, and cross-border operations. “For Shanghai Silver Fund, this shareholder change is more like opening an interface to external resources. Whether this interface can truly translate into business growth depends on subsequent product development and organizational capabilities.”

Light on equities, heavy on fixed income—will foreign investment bring new changes?

Shifting the perspective from shareholders to operations, Shanghai Silver Fund’s development trajectory over the years is quite clear. Founded in 2013, as of the latest data, its public fund management scale reached 252.3 billion RMB, managing 69 funds with 21 fund managers. In terms of size, it ranks among the mid-to-upper tier in the industry, positioned at 35th in the market.

However, when breaking down the scale, Shanghai Silver Fund’s business structure still bears the marks of a bank-affiliated public fund, with fixed income being its core. Currency and bond products still contribute significantly. Wind data shows that Shanghai Silver Fund manages 34 bond funds with a total scale of 1.615 trillion RMB, 3 money market funds with 86.4 billion RMB, and 30 equity and hybrid funds with scales of 643 million and 3.602 billion RMB respectively. The number of ETFs is zero.

Beyond scale, Shanghai Silver Fund’s recent performance has also shown some highlights. According to evaluations at the end of 2025, its equity funds ranked 19th among 97 fund companies in terms of absolute returns over the past 10 years, with a “Triple Five” rating for three- and five-year stock investment ability. Fixed income funds ranked 12th among 138 fund companies in absolute return, placing it in the top 9% of the industry.

However, the overall image still emphasizes its “fixed income strength.” In other words, while the company has been working to expand into equities and multi-asset capabilities, the market’s first impression remains that of a stable, bank-like platform.

After becoming a Sino-foreign joint venture, the outside world naturally associates it with internationalization, market-oriented reforms, and product diversification. But for traditional bank-affiliated public funds like Shanghai Silver Fund, the more immediate concerns are practical: Can its fixed income advantage be maintained? Can its equity and multi-asset lines grow without disrupting existing operations? Can its equity business gain more recognition? Will its multi-asset and cross-border strategies accelerate? Will the foreign shareholder create new synergies beyond channels?

Currently, after the completion of the shareholder change, the controlling stake remains unchanged, and the existing business foundation and product structure are likely to continue in the short term. However, with the official entry of the foreign investor, a new variable has been added to the company’s development logic. The key question is which aspect this variable will influence first—governance, product layout, branding, or channel synergy—and ongoing observation is needed.

(Reported by Wu Yuqi, Cailian Press)