Global fund managers losing ground in China
Global fund managers rushing to grab a foothold in the burgeoning Chinese financial services market are struggling to keep pace with local rivals.
While the lure of a market that is expected to double in size to US$92 billion within the next four years has proved enticing for many global groups, a new report has found that foreign funds management businesses in China are loosing ground.
The report, by Boston-based Cerulli Associates, found the market share of foreign fund managers, which can only enter China through a joint venture with a local group, dropped to just 21.6 per cent in June this year, a full 9 percentage points down from the same time last year.
The fall left wholly-owned Chinese groups with a massive 78.4 per cent market share of what is tipped to emerge as one of the world’s biggest funds management marketplaces over the next few decades.
According to Cerulli, China’s retail funds management market is growing at a compound annual growth rate of 19 per cent, much faster than neighbour India, another emerging financial services market, which is growing at a compound rate of 9 per cent a year.
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