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Leadership in Times of Plenty
Future winners in China's asset management industry
This paper by Casey Quirk outlines five business models – China Champion, Global Leader, Pan-Asia Alternatives Specialist, China Distribution Specialist, Bespoke Virtual PM — that will come to dominate the industry, and the key building blocks for each.
Asset management in China is a young industry, but make no mistake: managed assets are growing at a furious pace that no other market has been able to replicate. As competition intensifies and onshore investors become more discerning, clear winners will emerge.
China is set to become the second-largest asset management market globally, behind the United States, by 2019. In addition, the Chinese market should represent more than USD17 trillion in assets under management (AUM) by 2030, up from USD2.8 trillion in 2016.
Perhaps a result of an overheated growth, the industry has evolved in a manic fashion, characterized by a proliferation of investment strategies, products and distribution approaches, all trying to out-do each other, or at least copy the latest hot seller. In view of an oversupply and maturing industry landscape, asset managers will need to evolve to maintain market share.
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