China’s fund regulator has requested “explanations” from VanEck over its ETF plans in a communication that appears to mark a departure from Beijing’s previous stipulation that applicants for fully owned fund management units should be “top ranking”.

The China Securities Regulatory Commission issued an official document last Thursday detailing its feedback on VanEck’s application, submitted on October 29, for a new retail fund management unit in the market.

Instead of focusing on assets under management, the regulator has asked VanEck to provide “supplementary explanations on the developments of its ETF business”, as well as the business model, growth plans, “business advantages” and any other relevant considerations relating to the application to establish the new fund unit.