(China Alert) FMC subsidiaries: Decision time

-Finalized regulations for FMC subsidiaries come into effect December 15, 2016 -Capital requirements are only one aspect of these new rules -FMC shareholders will need to coordinate to decide the direction of subsidiary business Update: It’s what every FMC JV shareholder has been waiting for – the finalized subsidiary regulation. According to Z-Ben Advisors’ calculations, […]
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(China Alert) Connect bingo

  • Stock Connect
-With the Stock Connect expanding to Shenzhen next week, other asset classes are being considered -Opportunities vary between ETFs, bonds and other assets being added to the Connect Update: The Shenzhen Stock Connect starts on Monday but the question now is: where to next? This won’t remain an equity-only program. Among the potential asset classes […]
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(China Alert) Inbound access: Connecting the dots

  • Stock Connect
– The Shenzhen Connect will bring investors closer to a fully quota-less system – R/QFII are likely to become the secondary channels in the absence of a dramatic overhaul – This points to firm reasons not to give up licenses Update: The long-awaited Shenzhen Connect kicks off on December 5. While this is important, let’s look at the […]
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(China Alert) Carving up a USD2.5tr fund business

– FMC non-core AUM is continuing to grow and makes up the larger portion of the industry -In the face of new regulations, some subsidiaries are shrinking while others press ahead -Segregated accounts may increasingly become the driver of non-core AUM growth Update: Ironically, FMC non-core business still makes up the core of fund industry AUM, […]
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(China Alert) ETFs in China: Vanguard comes to town

  • ETF
-Vanguard is the largest global manager to set up an onshore investment management platform -As the first passive manager to do so, we believe it will help to grow the nascent onshore ETF business Update: The world’s largest passive manager has made a major move in China. Vanguard has established an investment management platform, potentially […]
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(China Alert) A target on your back

  • joint venture
-M&A activity in China’s financial industry is moving offshore -Global managers may soon find themselves as targets of Chinese takeovers Update: M&A activity in the Chinese asset management business has been heating up recently, mainly driven by financial conglomerates. So far, global managers have been passive players, with stakes in certain joint ventures (JVs) changing […]
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(China Alert) What you talkin’ bout Willis?

  • ranking
-Willis Towers Watson’s Global 500 ranked 34 Chinese managers -We believe 147 should make the cut -Omissions veil real opportunity in China Update: Z-Ben Advisors knows that understanding and sizing China is a difficult task – we’ve been doing it for 12 years. We appreciate Willis Towers Watson including Chinese managers in its recent ranking […]
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(China Alert) Mutual fund go-getters and no-getters

  • Mutual Funds
-Institutional mandates boosted competitiveness for large firms -Niche products were the preserve of some smaller firms, helping them to jump up the rankings -Competitive decisions made by FMCs onshore are a roadmap for new foreign and domestic entrants Update: Yesterday, we analyzed the high-level trends in the mutual fund industry; today, we take a closer […]
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(China Alert) Q3 public mutual funds: Jack be nimble, Jack be quick

  • mutual fund
-The mutual fund industry continued to grow in 3Q16 -Institutional capital flowed into purpose-built fixed income products Update: Growing 10.7% over the quarter to RMB8.75tr (USD1.3tr), China’s public mutual fund industry shows no sign of slowing down this year. This is even in light of recent regulatory restrictions on certain product types. Some managers are […]
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(China Alert) Turnover among ChinaAMC’s shareholders

-Two minority shareholders sell out of ChinaAMC for RMB4.3bn (USD630m) -Expectations now rising for more corporate actions (especially among JVs) during 2017 Update: In the latest example of Chinese corporate actions heating up on all fronts, ChinaAMC – the third-largest manager onshore – announced a shareholder change over the weekend that will see 17.8% change […]
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