China Investment Management: Market Update (April 2011)
Z-Ben Advisors’ latest Executive Briefing intends to give you a snapshot of the contents of our April China Investment Management: Market Update.
- Institutional Market: Not to put too fine a point on it, but your global brand means little, if anything, when prospecting for institutional business in China. It is back to square one and the process of building a brand locally should be viewed as a highly taxing initiative. Still, and as Z-Ben Advisors highlights in this report, it will be a process centered on knowing what it is your target clients are seeking (they are transactional in nature for now) followed by effectively communicating how you can meet their needs. Short. Simple. Sweet.
- Market Entry: Competition within China’s fund industry is at an all-time high. Therefore to be successful, new entrants are advised to solidify their core business before expanding into non-core segments.
- Distribution Dynamics: Facing an oversaturated banking channel, product manufacturers are set to enter the distribution space in hopes of widening the sales channel, lowering fees and getting their own piece of the lucrative distribution pie.
- QDII Update: Although QDII funds outperformed domestic equity funds on average in 2010, developments in this space remained slow. For foreign institutions, this might mean even slimmer business opportunities in this area.
- QFII Update: QFII awards will increase in size and frequency in 2011, although much of the new portion will have a distinctly regional focus. International managers will still be able to compete but they will need new strategies.
- Private Equity: Global PE managers are tapping into the rapid growth of Rmb funds. However, to regain ground lost by the shutdown of USD funding routes, they will need to develop new access strategies to tempt Chinese investors.
- Enterprise Annuities: In a move which has given hope to industry participants, MHRSS has liberalized asset allocation restrictions on EAs and extended an olive branch to those currently developing alternate product models.
- Z-Ben Advisors’ latest report also includes our regular Joint Venture, Corporate Actions and Monthly Performance reviews.
For more information, please contact us at info@z-ben.com.
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