China's addressable mutual fund market is projected to balloon to $12 trillion by 2027, of which foreign companies can expect to manage a quarter.
The prediction from Shanghai-based consultancy Z-Ben Advisors assumes domestic capital markets will grow while tax-incentivised pension schemes will accelerate flows into savings products.
“Contrary to the current conventional thinking, global managers will be able to compete and gain market share in the domestic Chinese fund industry,” said the report.
The consultancy anticipates the asset mix in China's funds industry will change. In 2017, money market funds accounted for 59% of the estimated $1.8 trillion held in Chinese mutual funds, according to the firm's statistics. By 2027, money market funds are forecast to account for 21% of mutual fund assets. The proportion held in active equity and passive funds is expected to rise in the same period.
Z-Ben Advisors predicts that fee revenues will remain attractive in China, with total industry profitability tipped to rise more than seven times over between 2017 and 2027.
©2018 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
Contradictory market sentiments from commentators have impeded the decision-making powers of the first wave of AI-powered ETFs, says Alvin Chia of Northern Trust Asset Servicing.
The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
