Part III: Opportunity – lower barriers, shifting assets

Z-Ben Advisors believes that the most troubling aspect of many of the market-spanning narratives currently surrounding China is that they fail to contextualize the nation’s actual contribution to global growth appropriately. Nor do they establish what that growth means for the broad population of foreign firms itching to enter China’s rapidly-developing and increasingly-open financial industries. The reality is that opportunity for foreign financial firms is largely unaffected by recent market or economic slowdowns. In fact, it is influenced much more deeply by market maturation, demographic shifts and regulatory liberalization; all of which are already attracting foreign participants.

In this publication, the third in a series examining China’s place in the global investment landscape in 2016, we present three critical factors:

• Opportunity will come from reallocation: As China moves away from a bank-dominated financing system, opportunities for managers and service providers are emerging in new markets which are much more accessible to foreigners.
• Demographics: China’s ascending millennial generation and the abolition of the one-child policy highlight the country’s aging population problem, which requires better investment management and portfolio diversification from a growing range of pension providers.
• New markets, new access: Foreign firms are being granted unprecedented market and customer access but face additional hurdles in reaching investors onshore while the infrastructure to service these clients is being built.

For more information on this or other reports, please feel free to contact [email protected].

For a sample of this report, please see below: