(China Alert) China RMB fixed income: USD7tr to be tapped

  • Fixed Income, QFII, RQFII
·IBB license approval continues to grow for foreign managers ·A mismatch between investor demand and manager supply exists ·This mismatch is set to grow significantly for the foreseeable future Update: China’s RMB45tr (USD7tr) fixed income market is continuing to steam ahead. Licenses to the interbank bond market (IBB), which makes up over 90% of the […]
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(China Alert) HSBC: Qianhai and mighty

  • JV
·HSBC has announced the first majority-owned JV brokerage ·It was obtained through CEPA ·Majority ownership is widening on all fronts in China Update: In a release yesterday, HSBC announced an agreement with the Shenzhen Qianhai government to establish the first majority-owned joint venture (JV) securities company in China. A 51% stake has been secured by […]
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(China Alert) China WFOE: Three is the magic number

  • WFOE
·Global managers need a WFOE to run mainland money ·Three WFOE structures currently exist ·Firms are using all three structures to pursue their China strategy Update: As an indication of its China intent, Schroders has submitted a WFOE name registration to the Shanghai Commercial Bureau for approval. This follows recent, similar moves by Fidelity, BlackRock, […]
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(China Alert) China Q3 MF numbers: Minor drop, major shift

  • MRF, Mutual Fund Companies
·Chinese public MF AUM fell 5.6% to RMB6.7tr (USD1.06tr) ·MMFs received large inflows at the expense of equity products ·Non-core business continues to surge, piling on competitive pressure Update: Chinese public mutual fund AUM fell from RMB7.1tr (USD1.1) to RMB6.7tr (USD1.06tr, -5.6%) in the third quarter. FMCs are still keenly feeling the effects of equity volatility. […]
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Strategic Outlook – Integrating, not Emerging – Part II

  • Risk, volatility
Market swings that characterize economies with deepening financial systems – The US in the 1980s and Europe in the 1990s – are now being seen onshore in China but on a much different scale and at a much different point in its development. The mid-point of 2015 demonstrated that equity volatility originating in China can […]
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(China Alert) Outbound flows: More volume, better programs

  • FTZ, QDII, QDII2, RQDII
·QDII2 and RQDII are the next steps in outbound investment ·The programs are both complements and upgrades to QDII ·Real opportunities for foreign managers are being created Update: While attention has been focused on Xi’s visit to the UK, and the warm glow arising from trade agreements, Z-Ben Advisors has been surprised to see a […]
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(China Alert) Fidelity expands in China: The new normal

  • WFOE
·Fidelity has applied for a new WFOE ·The directionality of China access and onshore business is clear ·WFOE strategy is becoming ever more critical Update: Last Thursday, Fidelity announced that it has been approved to establish a WFOE on the Mainland (widely expected and discussed to be an investment management WFOE). This would be the […]
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(China Alert) Chinese hedge funds: Back to the future

  • Hedge funds, PFM
·PFMs are the fastest growing AM segment in China ·This growth is continuing despite volatility ·The PFM structure is being used by global managers for China access Update: Private securities fund managers (PFMs), or China’s equivalent to western hedge funds, is the fastest growing asset management segment on the Mainland. However, it gets very little […]
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(China Alert) MRF update: Traveling and moving

  • MRF
·Four new MRF funds have been lodged with CSRC ·Domestic agent selection is splitting into distinct tiers ·Re-domiciling and foreign ownership will define MRF Update: Four new MRF funds have been lodged with CSRC. CCB International and Value Partners are new names on the list. The update is not particularly surprising in terms of firm […]
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China Dashboard October 2015

  • Banks, Brokerage Sector, capital markets, cross border activities, fund flows, Hedge funds, insurance sector, mutual fund sector, regulatory updates, trust sector
An overview of the Chinese financial sector of October 2015 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. The chart of the month also provides insight on the forecasted growth in onshore and offshore investment mandates. For more information […]
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