China Dashboard – August 2019

  • 11-point, majority-control, PBoC
This Dashboard will examine key developments onshore from the month of July, including: PBoC’s 11 point plan Global firms execute on majority ownership Fund disclosure rules made more stringent State Council rolls out SOE asset-transfer plan STAR Board trading begins Aside from these key takeaways, we will also provide a quick analytical update on all […]
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China Alert – 100% – Different paths

  • 100%, China ownership, Risk, WFOE
100% – Different paths    Another Friday evening announcement attempted to clarify market opening for global managers. Previous regulatory statements focused on the joint venture path, while the latest addresses the WFOE route. The choice for each manager will determine which set of rules apply, and overall speed of the process. Please note that full […]
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China Alert – 100% – It’s about risk and reward, stupid

  • 100%, China ownership, Risk
100% – It’s about risk and reward, stupid   The “China is too risky” narrative has just been ratcheted up a few notches. Risks, yes, but case analysis shows unequivocally that returns can more than compensate. When modeling for China, return projections need to be as aggressive as the risk parameters. Please note that full […]
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Strategic Outlook: Active vs. passive

Active vs. passive Bringing the debate to China Active versus passive continues to be a polarizing subject globally. The very same debate is now emerging in China. In this Strategic Outlook, we give our perspective on China’s readiness for a passive revolution and where the opportunity lies for global managers. Please note that full versions […]
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China Alert – 100%: The art of contingency planning

  • 100%, WFOE
100%: The art of contingency planning    There is some hyperbole surrounding the new market opening timeline. Outcomes will be determined by the degree to which a global manager can flexibly execute. An assessment of the business risks must be properly balanced against the expected return. Please note that full versions of our China Alerts […]
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China Alert – The David vs. Goliath of China’s fund industry

  • China fund industry, fund flows, global managers
The David vs. Goliath of China’s fund industry   Of the 47 fund management companies debuting products since 2013, 11 have non-corporate backers. Without a sprawling conglomerate to lean on, each of these has had to experiment with new sources of growth. Despite the challenges, a select few successes leave behind key implications for global managers. […]
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China Dashboard – July 2019

  • AUM, CSRC, foreign firms, IM WFOEs, mutual fund, Onshore business
This Dashboard will examine key developments onshore from the month of June, including: The new timeline for 100% foreign ownership Lujiazui Forum provides clarifications for foreign firms Mutual recognition rebound continues CSRC expands scope of mutual fund stock lending Mutual fund AUM declines Aside from these key takeaways, we will also provide a quick analytical […]
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China Alert – Distributors finding form in MRF

  • Distribution, Fixed Income, fund flows, MRF
Distributors finding form in MRF  Funds in the program have now enjoyed four consecutive months of inflows. Reactivity has increased, suggesting important developments for demand. Equity funds, however, still have a lot of ground to make up on their fixed income counterparts. Please note that full versions of our China Alerts are for clients only, […]
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China Alert – Marking to market at 26x

  • global managers, Onshore business
Marking to market at 26x  Recent data give global managers a new benchmark to revalue their onshore interests. Among those in the higher tiers, China investments have increased in value at a significant clip. Multiples for future deals are likely to vary, but the sheer scale of the opportunity will remain constant. Please note that […]
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China Alert – The price for (2%) control requires a 33% premium

  • china fund, China joint venture, Fund Management, majority-control
The price for (2%) control requires a 33% premium   Details of the closely followed equity auction of China International are now public, valuing the company at USD1.8bn. On a relative valuation basis, the deal looks rather rich, whether including or excluding the premium for control. Although it is just a single reference point, global […]
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