The withdrawal is the first by a foreign asset manager that has submitted an application for a China mutual fund license, as rising Sino-U.S. tensions cloud the prospects for foreign businesses in the world’s second-biggest economy.
The board of the privately held U.S. firm with $69 billion in assets under management decided in December it would no longer pursue entering China’s $3.8 trillion mutual fund industry, according to two sources with direct knowledge who asked not to be named as the matter is private.
Uncertainties over U.S.-China relations and a delay in launching the business due to COVID-related reasons were the key concerns, one of the sources said, without elaborating.
The decision also comes as Van Eck’s business has suffered from the war in Ukraine, as it had to wind down its Russia-centric exchange-traded funds in December after suspending trading of the products, the source said.
Van Eck declined to comment.