Asset Managers to Form China Club

Asset Managers to Form China Club

UBS and Credit Suisse joined other asset management heavyweights in Shanghai for the launch of a new industry association.  

The new association wants to establish an exchange platform for global asset management institutions to help them set up and better understand China's burgeoning asset management industry, according to a report in «The China Daily».

A growing number of global asset managers have piled into China in the hope that they can tap into the aspirational middle class growth. Blackrock, the world's largest asset manager was the latest to clinch access to the key China market segment, following Fullerton Fund Management, and Fidelity International. 

Last year UBS Asset Management became the first Qualified Domestic Limited Partner (QDLP) license-holder to receive a Private Fund Management license in China.

The approval allows the wholly foreign-owned enterprise (WFOE) to offer onshore fixed income, equity, and multi-asset private funds to both institutional and high net worth investors in China.

Trillion Dollar Opportunity

Currently, Lujiazui Financial City, located in the Pudong district, is home to more than 60 overseas asset management institutions or their subsidiaries, including nine of the top 10 global asset management institutions.

China will account for nearly half of the global industry’s net new flows to become the second largest asset management market in the world by 2019. By 2030, according to a Deloitte report China will reach over $17 trillion in addressable assets under management.