(China Alert) Chinese insurers in 2016: Fundamental changes begin

  • Insurers
·China’s insurance industry is beginning a year of reform ·Regulations coming into force in 2016 will push firms offshore ·Europe should be seen as blueprint for what’s to come from insurers Update: Chinese insurers are beginning a year-long process of significant structural change, the effects of which will be felt both at home and abroad. […]
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(China Alert) MRF: Let the games begin

  • MRF
·Three global funds will soon launch in China via MRF ·MRF managers will face a challenging fundraising environment ·Key strategies can help firms achieve MRF success Update: Three mainland MRF funds launched in Hong Kong yesterday, and the three approved Hong Kong-domiciled global funds will imminently launch in the Mainland. Up to 14 more are […]
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(China Alert) QDII: Evolve to survive

  • QDII
·Foreign participation in China’s trust industry is declining ·A host of new outbound programs better serve key investor demands ·QDII will become a more nuanced program over the next year Update: v this quota halt is only partially attributable to SAFE’s concerns over capital flight. The past 18 months have seen the launch of several new […]
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(China Alert) Foreign firms exit China’s trust industry

  • trust
·Foreign participation in China’s trust industry is declining ·Capital requirements may force reevaluation of existing JVs ·Opportunities exist for new entrants with majority control Update: Z-Ben Advisors has observed that foreign shareholders are leaving their joint venture trusts in China. Two global financial institutions have exited their ventures entirely and another has had its stake […]
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(China Alert) PFMs: China’s next mutual fund managers

  • PFMs
·Private fund managers are moving to acquire mutual fund licenses ·A fund management license opens the door to retail investors ·PFMs’ moves create a roadmap for global managers’ China strategy Update: Private fund managers (PFMs) are now attempting to make the transition into China’s mainstream fund management industry, and their actions are giving a surprisingly […]
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(China Alert) China’s equity market circuit breaker

  • circuit breaker
·The CSI 300 circuit breaker will be active from January 1, 2016 ·15 min suspension for a 5% up or down move, full-day closure for 7% ·We believe this will cause long-term stability post-initial adjustment Update: A September draft regulation was confirmed last Friday, stipulating that China’s market circuit breaker will be active from January […]
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(China Alert) China’s brokerage industry: New opportunities

  • Brokerage
·Domestic institutional demand for broker services is growing ·Prime brokerage will be a key business line for global firms in China ·Challenges for foreign firms remain but opportunities are emerging Update: Recent regulatory enforcement actions affecting major domestic brokerages and the announcement of HSBC‘s majority foreign-owned joint venture (JV) securities company have shone a light […]
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(China Alert) SDR inclusion: Real and exploitable implications

  • rmb, SDR
·IMF SDR inclusion cements the RMB as a fixture in global markets ·First-movers will be best-positioned to capture structural change ·China’s reform agenda is becoming increasing irreversible Update: The IMF yesterday announced the RMB’s inclusion into the Special Drawing Rights (SDR) basket with a weighting of 10.9%. This move is of little surprise, understated magnitude […]
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(China Alert) FMC segregated accounts: Unprecedented visibility

  • FMC, Segregated Accounts
·Z-Ben Advisors’ first-ever breakdown of FMC SA trends ·Our analysis indicates a broad product and investor range ·This segment is a superb proxy for insti/HNWI demand Update: Z-Ben Advisors has gained unprecedented access to data on mainland FMC segregated accounts (SAs). We have broken down this newly-visible SA picture to shed much-needed light on investment […]
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(China Alert) Shanghai FTZ reform: All eyes on 2Q16

  • FTZ
·PBoC is leading FTZ reforms in Shanghai ·The Shanghai FTZ to be epicenter of China market access ·An understanding of reform direction is now vital for planning Update: The Shanghai FTZ was front and center in late-October proposals from PBoC which constructed a framework that will bring Shanghai in line with peers as a global […]
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