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 constraints and other reasons, international investors have had very limited participation in the Chinese capital market.
But this is changing. In 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.
The 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 growth 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’s 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 distribution 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 an 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.
Research – Connect – Facilitate
We operate with a Research – Connect – Facilitate model.
Research
Our research team conducts in-depth research on key topics about China’s capital market. These could be either bespoke research projects for clients or sponsored research for public release. We have conducted researches in:
- China asset manager rankings;
- China sustainable investment and cleantech opportunities;
- China global asset allocation/outbound investment;
- China pension reform and pension asset allocation;
- China capital market entry and onshore business-building strategy;
- The emergence of China bank wealth management companies.
Connect
In the areas we have researched, we organize seminar, focus group meetings, investor-manager dialogues, roundtable discussions and other formats of communication sessions connect market participants from both China and Europe. Each year, we also organize cross-border asset management senior executive business delegations trips between China and Europe. Through these connection programs, participating organizations build up relationship and identify collaborative opportunities.
Facilitate
We have been engaged to provide advisory and facilitation services for firms in their detailed work in exploration of cross-border businesses, such as joint ventures, strategic partnership, fund raising, etc.
