Strategic Outlook: Digital – February 2021

  • Alipay, Bangnitou, Distribution, Douyin, FMCs, Tiantian
Digital Distribution or marketing? The increasing integration of digital solutions and partnerships with internet firms mean onshore changes are happening at breakneck speed. As such, it can be difficult to prioritize different elements in the distribution chain. A laser-focus on shelf space can miss nuances in the mainland market. This Strategic Outlook takes a glance […]
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Strategic Outlook: Group-think January 2021

  • BNP Paribas, BWMPs, CITIC, HSBC, Huatai, insurance, JVs, Licenses, Mutual Funds, ownership, Prudential, Taikang
Group-think Multiple China approaches Market opening continued apace in 2020, and foreign groups will soon operate their own fund management companies. At the same time, a wider array of entities will be able to access the mutual fund license, forcing commitment about the best way forward. That path forward will depend on each group’s existing […]
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Strategic Outlook: China in 2021

  • Inbound, Market entry, outbound, Portfolio Advisory, QDII, Regionalization, Regulatory
China in 2021 Eight trends to watch Onshore activity has kept a prodigious pace throughout the year, providing a generous wellspring for our perennial trends edition of the Strategic Outlook. In the form of eight defining trends, we take a reading of flow drivers that will factor prominently in 2021. We also examine the nexus […]
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Strategic Outlook: Pensions – November 2020

  • EA, FOFs, NSSF, OA, pension, PPF
Pensions Construction in progress For a number of years now, we’ve made a point of revisiting the topic of pensions in China at the close of the year. Important to the macro landscape, yes, but it is also the largest latent opportunity for investment management onshore. This version of our Strategic Outlook reviews the mechanical […]
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Strategic Outlook: China market sizing

  • Addressable assets, Institutions, market sizing, pension, Retail investors
Following the flows With an addressable market at RMB36tr in 2019, China is increasingly being mentioned among the key growth initiatives of global asset managers. As such, developing a clear understanding of the opportunity that this market presents is an ongoing challenge. This Strategic Outlook looks at onshore market structure through the lens of what […]
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Strategic Outlook: Fintech

  • Ant, CMB, Distribution, fintech
One Ant at a time All eyes are on Ant – at least in the IPO world. The company has catapulted to the fore of the financial industry in China and helped define a fintech landscape. At the same time, its role in the distribution of funds and financial services is constantly changing. Keeping pace […]
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Strategic Outlook: Active demand

  • Active equity, Active funds, AUM, CSI 300, onshore
Onshore investor needs The numbers speak for themselves: equity fundraising of USD148bn year to date. Active demand is an indispensable driver of mutual fund AUM growth. This comes at a cost to flexibility, though, and one that has to be accounted for as global managers are forming strategies to enter the market. This Strategic Outlook […]
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Strategic Outlook: Outbound

  • AUM, Bank Wealth Management Subsidiaries, MRF, outbound, QDII, Stock, Wealth Management Connect
Misunderstood Managing money globally on behalf of Chinese clients continues to be the primary port of call for managers embarking on their onshore journeys. However, in the context of a relatively static outbound framework – contrasted with market opening of the onshore and inbound businesses – it is long past time to consider where this […]
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Strategic Outlook: China exposure

  • China exposure, FMCs, Inbound, Institutions, Market Opening, onshore
Getting up to speed Recent evidence demonstrates that allocations to China are picking up pace. This isn’t just along equity and fixed income asset classes, there is also organic demand in broader inbound investment strategies. Considering the interest asset managers and servicing counterparties have in meeting ongoing investment needs, this Strategic Outlook applies a long […]
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Strategic Outlook: ESG in China

  • AUM, ESG, Flows, Indices, market sizing
New Pastures – ESG in China ESG and China have been two of the most popular topics among the global investment community recently. Their relevance isn’t fading, and as foreign investors continue to enter the opening market, considering the two subjects in tandem will be increasingly important. However, the development of ESG investing in China […]
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