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 […]
Read More

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. […]
Read More

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, […]
Read More

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 […]
Read More

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 […]
Read More

China Alert – Cost of entry to China’s fund industry

  • china fund, China fund industry, fund managers
Cost of entry to China’s fund industry The possibility of acquisition and consolidation in the fund management industry is rising. Few acquisition targets are to be found among the large, established fund managers. However, transactions on the lower end are increasing, giving us the approximate cost of a smaller company. Please note that full versions […]
Read More

China Alert – Market opening further clarified

  • foreign firms, market
Market opening further clarified  This year’s Lujiazui Forum just gave market opening a new lease of life. Shareholding parity across entities still requires further clarification. Intent aside, significant follow-up is expected to crystalize the situation for foreign firms. Please note that full versions of our China Alerts are for clients only, if you would like […]
Read More

China Alert – Committing capital to compete

  • capital, capital markets, IM WFOEs
Committing capital to compete Total registered capital for IM WFOEs has already increased by 11.3% in 2019. With business expansion picking up, we anticipate greater capital commitments. Large or more-frequent top-ups are due for those on track to convert to the full public-fund business. Please note that full versions of our China Alerts are for […]
Read More

China Alert – Behind the insurance asset management curtain

  • free trade zone, ownership, pilot scheme
Behind the insurance asset management curtain  Insurance asset managers have reported figures on their revenue, profit and AUM. While they have multiple product types in their arsenal, there remain stark gaps in the offerings. A wide gulf will likely persist between their capabilities and those of traditional fund managers. Please note that full versions of […]
Read More

China Alert – Pension mutual funds march on

  • free trade zone, ownership, pilot scheme
Pension mutual funds march on Pension fundraising is starting to show a divide in investor preference. Large managers are leading the charge in filling product gaps. Generating demand could be a costly (but necessary) endeavor for fund managers. Please note that full versions of our China Alerts are for clients only, if you would like […]
Read More
Login
Follow us