What does the UBS and Guotai MOU mean?

UBS Asset Management and Shanghai-based Guotai Asset Management jointly announced over the weekend that they had signed a memorandum of understanding providing a basis for UBS to explore a possible acquisition of an equity interest in Guotai.It is not the first such MOU but it comes at a time when scepticism about foreigners successfully establishing a joint venture with a Chinese fund management company (FMC) is on the rise. This agreement is important because it affirms that this st…