How global managers can win in China
Foreign managers have long been interested in the vast potential of the Chinese asset management market, but until recently have faced significant regulatory barriers impeding access to the market. The "11 measures" introduced by Chinese regulators in 2019 made great strides in removing these barriers, and foreign asset managers can now, from a regulatory standpoint, access all client segments in the Chinese market.
However, while regulatory barriers have been removed, foreign managers will still face significant challenges when looking to penetrate the Chinese market. China remains a unique and strongly domestic market, and foreign managers will have to navigate a wide range of challenges, from unique investor preferences to lack of a distribution network.
Firms are rushing to take advantage of the new regulatory opening, but there is no clear formula to success, and building a real presence in China requires heavy investment. In our latest paper Opportunity knocks: How global managers can win in China, we cover the recent regulatory changes and subsequent market entry options for foreign firms.
We also provide five good practices our team has identified as foreign firms look to pave a path to success in China:
We hope you find this document useful and welcome your feedback and comments.