Chinese Asset Management Industry: Its Categories, Growth and Regulations

Abstract

This study presents the most updated analysis on China’s asset management industry. First, this study introduces each category of the asset managers in China. Second, this study examines the factors that contribute to the growth of assets under management, which is the first of its kind. Finally, this study analyzes the implications of recent regulations and their effect on asset managers.

Keywords:

• China
• asset management industry
• wealth management product
• monetary policy
• regulation

notes

Acknowledgment

The author would like to thank one anonymous referee and the Editor Hung-Gay Fung for very valuable comments. All errors are the author’s sole responsibility.

Notes

1 The Central Comprehensively Deepening Reforms Commission (Chinese: 中央全面深化改革委员会), formerly known as the Central Leading Group for Comprehensively Deepening Reforms (Chinese: 中央全面深化改革领导小组) is a policy formulation and implementation body set up under the Politburo of the Communist Party of China in charge of comprehensively deepening reforms. These reforms are intended to be even more far-reaching than the previous round of economic reforms initiated by Deng Xiaoping.

2 Source: Wind Info.

3 Source: Wind Info.

4 Qualified Domestic Institutional Investor (simplified Chinese: 合格境内机构投资者), also known as QDII, is a scheme relating to the capital market set up to allow domestic financial institutions to invest in offshore markets such as equities and bonds.

5 Source: Wind Info.

6 Yu'E Bao is the largest money market fund in the world with US$233 billion assets under management as of the end of 2017. For more information, see http://www.thfund.com.cn/en/yuebao.html.

7 Source: Wind Info.

8 The datasets on publicly-offered mutual funds between Q4, 2012-Q4, 2014, which are not available from Wind Info, are obtained from the Asset Management Association of China. The datasets for Q2 and Q3, 2012 are assumed to the moving average of following 3 quarters. The reason for this is that the size of publicly-offered mutual funds between Q4, 2012- Q3, 2013 varies a little, and does not grow continuously.

9 Source: Wind Info.