A survey on foreign fund management JV in China
KPMG and Reuters has released a report that surveys the lessons learnt by the foreign fund management joint ventures that have set up in China over the past four years.
Since approval for joint ventures was granted in late 2002, 30 joint ventures and foreign-invested companies have been established or are in the process of doing so.
Twenty of these companies have launched two or more retail products. Since 2002 China's fund industry has seen change with assets under management rising more than sevenfold.
In 2006, assets rose by more than 80%, driven by impressive product launches and a 130% rise in the Shankhai Composite Index.
By late 2006, foreign invested fund managers had captured 39% of the market in an industry with some USD111bn in assets under management.
KPMG and Reuters spoke to 15 fund management executives based in Hong Kong, Singapore and mainland China. These interviews were supplemented by extensive desktop research.
The report gives an analysis of the current market conditions and potential of the Chinese market, covers the pitfalls and challenges for foreign fund management companies, looks at the best way to choose partners to go to market with in China and, reports on the interviewees’ optimism for their prospects in China.
It also contains list of domestic fund managers, list of joint venture fund managers, foreign invested fund managers and overview of management and custodian fees in China and lists of China's Qualified Foreign Institutional Investors and Qualified Domestic Institutional Investors and the investment quotas for each firm.
KPMG Australia partner Jacinta Munro was available to speak about how Australian fund management companies can approach a joint venture in China and also comment on the findings of the survey.
22-May-2007