China Alert – Not so fast on outbound

  • free trade zone, ownership, pilot scheme
Not so fast on outbound SAFE issued USD750m of QDII quota to five domestic managers. As it stands, new issuance looks mostly tied to an imminent ETF link. Small blips are welcome but are not entirely indicative of real opportunity. Please note that full versions of our China Alerts are for clients only, if you […]
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China Alert – Setting the record straight: 2018 fund flow figures

  • free trade zone, ownership, pilot scheme
Setting the record straight: 2018 fund flow figures Focusing on the real metrics shows which onshore managers truly won in 2018. Bond index funds provided a reliable source of fundraising, but generating organic inflows proved tricky. Looking deeper, managers that successfully attracted retail flows stood out. Please note that full versions of our China Alerts […]
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China Alert – The ownership reform fast-track

  • free trade zone, ownership, pilot scheme
The ownership reform fast-track • The Shanghai free trade zone intends to abandon ownership limits. • The announcement of a pilot scheme came at a municipal government press conference. • While this could shorten the current timeline, global managers’ existing plans regarding majority ownership should not be discarded. Please note that full versions of our […]
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China Alert – China joint venture 2.0

  • China joint venture, China joint venture 2.0
China joint venture 2.0 Two new greenfield ventures demonstrate that foreign players are taking starkly different approaches to the onshore business. Established relationships and elastic shareholding structures should aid both as market opening progresses. New partner selection won’t be so smooth for current fund JVs. Please note that full versions of our China Alerts are […]
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China Alert – What sub-advisory is and isn’t

  • foreign fund managers, private funds, WFOE
What sub-advisory is and isn’t Recent approvals have led to some confusion over global managers’ onshore opportunity set. This sub-advisory qualification should be pursued by all investment WFOEs, as it offers an advisory add-on to the private fund product business. It marks yet another route for foreign managers to compete domestically. Please note that full […]
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China Alert: 51% approvals

  • fund managers
51% approvals Three global firms have now received approval for control of onshore brokerages, in addition to a CEPA venture by HSBC. Progress is welcome and it is now up to fund managers to follow up. Please note that full versions of our China Alerts are for clients only, if you would like more information […]
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China Alert – Preparing for the second year of commercial pensions

  • commercial pension, pension
Preparing for the second year of commercial pensions • The tax-deferred pension scheme saw inflows of USD10.2m (RMB70m) by the end of 2018. • We are a little over a month away from expansion and expected structural enhancements to the program. • Fund managers are making significant headway to prepare for their grand entrance. Please […]
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China Alert: China’s mutual fund market now second largest in Asia. Soon to be #1.

• Continued bank disintermediation has driven China’s mutual fund industry to break RMB11.2tr (USD1.7tr) and room for growth remains. • Investor demand remains highly lopsided but, based on historic trends, a reallocation of AUM is not only inevitable, it may be imminent. • This industry AUM milestone comes the very week key government agencies prepare […]
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