(China Alert) Towers Watson Global 500: The real China numbers

  • Global 500
·31 Chinese managers made the Towers Watson Global 500 ·Z-Ben Advisors puts the figure above 100 ·Omissions veil real opportunity in China Update: The 2014 top 500 global asset manager list was released by Towers Watson earlier this month with 31 Chinese managers making the cut. This represents a significant increase from eight in 2013. […]
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(China Alert) The Connect: One year review

  • cross border, Stock Connect
·2015 was a year of growing global integration for the Connect ·Adding Connect exposure to a prospectus is now essential ·The Connect should expand in both geography and asset class Update: After one year of operation the Connect’s usage stands at 40% and 37% for the northbound and southbound channels respectively. 2015 has been a […]
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(China Alert) RQFII: License to fulfill

  • QFII, RQFII
·Korea and Singapore’s RQFII quota increases occurred for different reasons ·Global RQFII hubs are fulfilling different roles and niches ·Hong Kong’s RQFII cap is not detrimental to its role as the key RMB hub Update: The RQFII program continues to fire with Korea and Singapore both receiving aggregate quota top-ups in November. Both increases occurred […]
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(China Alert) China brokerage ownership: Shaken and stirred

  • Brokerage, JV
·HSBC’s unique brokerage JV highlights deficiencies in the industry ·Industry shifts and ownership liberalization are on the horizon ·Control is the critical issue for all foreign participants Update: CSRC has now accepted HSBC’s majority-owned brokerage joint venture (JV) application. This should be the beginning of a shake-up in the fragmented mainland securities industry that has […]
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(China Alert) FMC non-core business: The other side of the coin

  • FMC, JV
·FMC non-core business makes up RMB10.2tr of China’s MF industry ·FMC subsidiary and parent SA business is opaque and largely misunderstood ·Foreign firms (particularly JV partners) need to understand this space Update: The majority of the almost RMB17tr (USD2.7tr) Chinese fund management industry remains veiled and misunderstood. Fund management company (FMC) non-core (i.e. not public […]
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(China Alert) China RMB fixed income: USD7tr to be tapped

  • Fixed Income, QFII, RQFII
·IBB license approval continues to grow for foreign managers ·A mismatch between investor demand and manager supply exists ·This mismatch is set to grow significantly for the foreseeable future Update: China’s RMB45tr (USD7tr) fixed income market is continuing to steam ahead. Licenses to the interbank bond market (IBB), which makes up over 90% of the […]
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(China Alert) HSBC: Qianhai and mighty

  • JV
·HSBC has announced the first majority-owned JV brokerage ·It was obtained through CEPA ·Majority ownership is widening on all fronts in China Update: In a release yesterday, HSBC announced an agreement with the Shenzhen Qianhai government to establish the first majority-owned joint venture (JV) securities company in China. A 51% stake has been secured by […]
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(China Alert) China WFOE: Three is the magic number

  • WFOE
·Global managers need a WFOE to run mainland money ·Three WFOE structures currently exist ·Firms are using all three structures to pursue their China strategy Update: As an indication of its China intent, Schroders has submitted a WFOE name registration to the Shanghai Commercial Bureau for approval. This follows recent, similar moves by Fidelity, BlackRock, […]
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(China Alert) China Q3 MF numbers: Minor drop, major shift

  • MRF, Mutual Fund Companies
·Chinese public MF AUM fell 5.6% to RMB6.7tr (USD1.06tr) ·MMFs received large inflows at the expense of equity products ·Non-core business continues to surge, piling on competitive pressure Update: Chinese public mutual fund AUM fell from RMB7.1tr (USD1.1) to RMB6.7tr (USD1.06tr, -5.6%) in the third quarter. FMCs are still keenly feeling the effects of equity volatility. […]
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(China Alert) Outbound flows: More volume, better programs

  • FTZ, QDII, QDII2, RQDII
·QDII2 and RQDII are the next steps in outbound investment ·The programs are both complements and upgrades to QDII ·Real opportunities for foreign managers are being created Update: While attention has been focused on Xi’s visit to the UK, and the warm glow arising from trade agreements, Z-Ben Advisors has been surprised to see a […]
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