According to the Financial Times, investment managers are abandoning the Chinese retail investment market to focus on the more lucrative wealth management market with Stefano Chao, investment and research manager at AZ Investment Management, which is owned by Azimut Holding, Italy’s largest independent asset management company, quoted as saying:
“There is very little hope in the retail market given the high churn of clients. It is very hard to make money out of mutual funds in China. Working with institutions and high net worth individuals is no easy job either, but at least there is greater upside potential.”
Since 2012 when a rule change enabled asset managers to set up wealth management subsidiaries, 69 of China’s 92 registered mutual fund companies have established wealth subsidiaries, including Citic-Prudential Fund Management, Lombarda China Fund Management and ICBC Credit Suisse Asset Management. The wealth management market grew 65% year on year in 2013 to an estimated Rmb11tn ($1.8tn), dwarfing the 15% growth in bank deposits, according to Stephen Green, an economist at Standard Chartered in Hong Kong.
To read the whole article, Wealthy Chinese offer rich pickings, go to the website of the Financial Times.
Similar Posts:
- China’s Mutual Funds Industry Now the Second Biggest in Asia (The Asset)
- Noah Holdings (NYSE: NOAH): A Chinese Wealth Management Firm Facing a “Crisis of Confidence” in the Sector
- China’s New Rich Distrusts Financial Advisers (The Asset)
- Some Key Points: The Renminbi & China Commercial Paper Market (KraneShares)
- Singapore’s Sovereign Wealth Fund to Increase Investment in China (FT)
- Fund Managers Are Wary of “Cheap” Asian Stock Markets (FT Adviser)
- China A: Opportunity for Active Managers (William Blair)
- The Chinese Property Market: The Most Important Industry Globally Which Few Understand (Platinum Asset Management)
- Macro Tailwinds That Could Propel China’s Internet Sector (KraneShares)
- Norway’s Sovereign Wealth Fund Slows Emerging Market Investment (Bloomberg)
- Aberdeen Asset Management’s China Update
- Stop Worrying About Chinese Debt? (The Asset)
- China M&A a Bright Spot Amid Regional Decline (The Asset)
- GF Securities (HKG: 1776 / SHE: 000776 / FRA: 9GF): A Value Stock After Recent Scandals & Crackdowns?
- Kyle Bass: China’s Xi Intentionally Crashing Property Market, Preparing For War (Epoch Times)
