China Capital Market and Asset Management Industry

China has the world’s second largest economy, second largest equity market and third largest bond market. However, due to capital flow control, regulatory constraint and other reasons, international investors have had very limited participation in the Chinese capital market.

But this is changing. Recent years, China has clearly adopted a policy to encourage capital inflow, by broadening investment channels and relaxing regulatory constraints. Meanwhile, the international investment community responded positively too. MSCI has included China A shares in its global equity indices and FTSE Russell has announced the same.

Chinese asset management industry is also experiencing fundamental changes and rapid open-up. Domestic managers are improving their operations and governance, aiming at increasing their international client base. Their adoption of digital technology is pressing ahead rapidly and ESG also gets on the agenda of many of the leading players. Meanwhile, most of the major global asset management houses have built up their China presence and local product offering, bringing their global experience and expertise to the China market. The reform of the pension system and the growing of institutional investors in China offer solid support to the expansion of asset management businesses for both local and international houses.

Allocate to China (ATC) Initiative

Allocate to China (“ATC”) Initiative is a research-based communication and solution platform bringing together global investors, asset managers and other stakeholders to share insights about China capital market, to build business relations and to form partnership. We identify key themes regarding China market and engage all parties through research work, events and roadshows.

ATC Initiative provides a platform for Chinese asset managers to demonstrate their capability to global investors, build an international brand and gain access to the European distribu-tion network. ATC Initiative also helps Chinese managers navigate the complicated European regulatory system and enter the European market efficiently and cost-effectively.

ATC Initiative helps global investors and international asset managers to gain in-depth understanding of various asset classes and market sectors in China, as well as its regulatory system regarding access channels, onshore business presence, client development, etc.

Our Professional Network

We have worked closely with four strategic partners in the service provider sector who are leaders in their fields.  They have hosted the ATC events and contributed to the research work.

Shanghai Lujiazui Financial City (China’s prime financial district), CFA Institute and a variety of trade associations and government bodies have supported the ATC Initiative and its event series.

We have a strong network of international investors with an increasing interest in the China market, including pensions, insurances, endowments, family offices, sovereign wealth funds, etc. We also work closely with leading asset managers, both global and local Chinese houses, with unique capabilities and skills to offer regarding the China market. They have participated in our investor-manager dialogues, research theme development and events. So far, we have around 30 investors/asset owners who have spoken at our roundtable and seminar events.

The Work Approach

Working closely with global investors and asset managers, we identify key investment themes in relation to the China capital market and develop them into workstreams. We organize focus group meetings, investor-manager dialogues, roundtable discussions and other formats of communication sessions to facilitate insight contribution from different stakeholders for each workstream. The outcomes of these well-researched workstreams will be presented to the wider investment community, the regulators and the media, in a variety of formats.

Our current workstreams include:

  • China pension reform and the opportunities it brings
  • ESG investment in China
  • Digital technology application in China asset management industry
  • Successful hedge fund strategies in China
  • Value creation by private equity in China

Click here to know more about our workstreams.