(China Alert) QFII reforms: Major step towards harmonization

  • QFII
·SAFE’s changes to QFII will redefine the cross-border space ·The base quota has a cap of USD5bn ·MSCI’s A-share inclusion decision could now occur in 2016 Update: SAFE has initiated major changes to China’s inbound investment environment via the QFII program. The most far-reaching being the introduction of a quota registration system based on each […]
Read More

(China Alert) Outbound restrictions: Temporary but telling

  • insurance, outbound, QDII
·Regulators continue to crack down on outbound programs ·Demand for offshore investment from firms and investors remains high ·This is a precursor to enhanced outbound investment platforms Update: Differing reports about the level of outbound capital restrictions all radiate a negative view on China, not at all helped by recent volatility. However, they fail to […]
Read More

(China Alert) China strategies and quota diverge

  • QFII, RQFII
·Mega RQFII quotas are now a real option for China access ·The largest asset managers are set for increased competition ·Firms are readjusting exposure between QFII and RQFII Update: Recent market volatility in China has led to differing R/QFII access strategies among global investors. On the one side, there are an increasing number of managers […]
Read More

(China Alert) China pension: Reforms now a priority

  • pension
·2016 will see major change to China’s pension system ·Growth will be driven by the introduction of real tax incentives ·Pension flows will result in fund AUM hitting USD10tr Update: China’s investment management industry has exceeded USD3.2tr in assets of which less than 6% comes from pension assets. Based on our conservative estimates, upcoming pension […]
Read More

(China Alert) China Mutual Funds: ESOP’s Foibles

  • ESOP, Mutual Funds
·We believe ESOPs should gain traction in 2016 ·This is a space with little precedent for foreign JV partners ·A miscalculated ESOP could cost foreign JV partners dearly Update: Z-Ben Advisors believes China Universal’s recent announcement of an ESOP scheme may set the tone for a trend among FMCs in 2016. The immediate motivations for […]
Read More

(China Alert) RQFII: Asset owners strengthen their hand

  • RQFII
·Two Canadian pension funds have received RQFII licenses ·This indicates a strategic shift towards RMB fixed income ·We believe R/QFII program harmonization should happen by 2018 Update: December saw two large Canadian pension managers receive RQFII licenses from CSRC, namely the Canadian Pension Plan Investment Board (CPPIB) and Ontario Pension Board (OPB). This represents a […]
Read More

(China Alert) RMB fixed income: Golden years

  • Fixed Income
·Exchange rate volatility should be a driver of Panda bond growth ·Major reforms are occurring in the onshore fixed income market ·Chinese fixed income remains under-allocated in global portfolios Update: Z-Ben Advisors believes that January’s exchange rate volatility in offshore RMB (CNH) further highlights structural changes we are observing in the onshore fixed income market. […]
Read More

(China Alert) Volatility: ignorance isn’t bliss, it’s expensive

  • volatility
·Last week’s volatility hit global markets ·Domestic market conditions are pushing Chinese money offshore ·Single data points do not paint a full picture of China’s markets Update: Z-Ben Advisors would like to remind the audience that the volatility witnessed over the past week is nothing new. It would be very dangerous to extrapolate a single […]
Read More

(China Alert) China public mutual fund 4Q15 AUM hits USD1.3tr

  • mutual fund
·China’s public mutual fund industry grew 25% QoQ ·Industry leaders were able to retain AUM with MMF strategies ·Structural change should continue into 2016 Update: These are certainly interesting times with great volatility at hand, volatility which would be expected to have had an enormous effect on China’s public mutual fund industry as much as […]
Read More

(China Alert) MRF: A Zealous beginning

  • MRF
·Zeal AM launched the first northbound MRF fund in China ·The firm is using an interesting launch strategy via Tianhong ·Generalization from Zeal’s experience may be difficult Update: A boutique Hong Kong firm, Zeal Asset Management, has become the first to launch an MRF fund in China, entering a big market via a groundbreaking cross-border […]
Read More
Login
Follow us