(China Alert) Bond index inclusion: Closer than you think

– Bloomberg has created transitional benchmarks for Chinese fixed income. – Broad bond index inclusion may now be more likely than MSCI’s A-share inclusion. Update: As the same old questions are starting to pop up about MSCI A-share inclusion this year, Z-Ben Advisors believes managers should also be looking at the other index decision: Chinese fixed […]
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(China Alert) WFOE PFMs: What everyone is asking

  • WFOE
-Regulations have only provided clarity on initial registration. -Global managers must consider a broad base of regulations and guidelines to discern what is feasible. Update: Now that global managers can enter the private fund industry in China, attention is turning to how to actually set up and raise money. While registration with the industry body […]
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(China Alert) Inbound channels hit by RMB internationalization pains

  • inbound channels
-Dwindling offshore RMB pools are increasing financing costs for inbound access channels. -The RMB’s drive towards internationalization is being hampered as a result. Update: Liquidity squeezes in the offshore RMB (CNH) market are becoming a greater concern for global asset managers. Greater funding costs (we’ve all seen the CNH-HIBOR spikes) and shrinking CNH pools in […]
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(China Alert) Competition to enter set to explode

  • FMC
– With 123 FMCs currently, there may be over 150 on the Mainland by 2020. – There is a bottleneck in approvals with many new FMC applications in the pipeline. Update: Last week, State Council committed to allowing majority-foreign-owned FMCs in China, with some as early as within the next 12 months. This week, we look at […]
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The Competition – A spanner in the works for Aberdeen’s WFOE

A spanner in the works for Aberdeen’s WFOE Talk about a curveball for AMAC registration hopes. We have the first example of practicalities making headlines as opposed to pure fanfare when it comes to the Investment Management (IM) WFOE: Aberdeen has lost its GM. It may be the latest casualty of the hard and fast […]
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(China Alert) Broking new ground

-The State Council has committed to further opening the sector to global players. -We believe two foreign majority-owned brokerages will be approved in 2017. Update: Brokerages are often the less-talked-about middle child of financial joint ventures (JVs) onshore. This is about to change as the State Council’s directive on Tuesday applies to brokerages as much […]
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(China Alert) Market access: New marching orders

  • asset management industry
-State Council released a document on opening financial markets to global competition. -We expect access to China’s mutual fund market to begin this year with a pilot scheme. Update: China now has its marching orders to open the asset management industry further to foreign control. The State Council yesterday released a much-anticipated document giving its […]
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China Dashboard January 2017

An overview of the Chinese financial sector of December 2017 that covers topics including: fund flows, regulatory updates, cross border activities, capital markets, insurance sector, mutual fund sector, banks, trust sector, brokerage sector and private (hedge) funds. These updates are further broken down by our analysis and data. In this month’s dashboard, we cover uncertainty […]
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(China Alert) Private funds: What global managers can expect

  • private funds
-Private fund industry AUM had positive growth in every month throughout 2016 -Global managers will enter the industry in 2017 Update: This once niche area of China’s financial industry has been consistently gaining prominence and is now competing with larger and more-established firms to attract capital from both individuals and institutions. In addition to robust […]
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(China Alert) M&A: Another JV FMC stake changes hands

  • M&A
– A new stake in a JV FMC has been put up for sale – To us, the valuation looks inexpensive but isn’t as straightforward as it may seem Update: The momentum of shareholder change in the fund management (FMC) industry is showing no signs of slowing. After Power Corp increased its holding in ChinaAMC at the […]
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