ASSET MANAGEMENT IN CHINA 2017

Transcription

1 ASSET MANAGEMENT IN CHINA 2017 Transitioning Under a New System Overview & Methodology In its 12th iteration, this report focuses on one of the biggest and most dynamic asset management markets in the region China. It examines regulatory developments and their effect on the asset management industry, key retail product and distribution developments, institutional demand, and cross-border product and distribution opportunities. This report includes two 24-page strategic overviews to supplement the full report. The 1Q 2017 Strategic Overview is available in April 2017, and the 2Q 2017 Strategic Overview is available in June Data comes from proprietary surveys of asset managers in China, and more than 30 interviews with asset managers, distributors, regulators, and other industry executives. Benefits: y Understand the key trends in China s asset management industry and potential strategies for foreign asset managers y Analyze the onshore exposure of existing wholly foreign-owned enterprises y Assess the competitive landscape of China s asset management industry focusing on foreign managers entry routes y Review China s retirement market and assess opportunities for managers in this sector Questions Answered: y What are the industry trends asset managers should take note of? y How should managers align their business strategies with the evolving regulatory system? y What are the routes that foreign asset managers can take to access the China market, and how can managers stand out from the intense competition? y What is the landscape of China s retirement market and how can managers access it? y How has fintech developed in China s asset management space? SUBSCRIPTION DETAILS $19,000 PURCHASE INCLUDES y Digital copy and hardcopy in color y Online access to 11 related reports y Unlimited online firm-wide access y Exhibits in Excel y Key findings y Analyst support y Interactive Report Dashboards NEW y Executive Summary Video NEW RESEARCH INCLUDED WITH SUBSCRIPTION y 9 years of The Cerulli Report - Asset Management in China y 2 years of The Cerulli Report - Asset Management in China & India For more information, contact us: ``info@cerulli.com ANNUAL 143 PAGES 78 EXHIBITS Cerulli Interactive Report Dashboards NEW Experience Cerulli s digital analytics platform and explore interactive data from this report We are pleased to include these interactive report dashboards with your subscription: 1. Chinese Mutual Fund Market Overview: Examine assets under management by investment objective, net new flows, net new flows by investment objective, and distribution channel. 2. Chinese Institutional Market Overview: Analyze investable assets by institution type and institutional addressable assets in China. 3. Chinese Financial Products Landscape: Compare the Chinese product landscape by institutional/high-net-worth investors and mass-retail investors. CERULLI ASSOCIATES info@cerulli.com

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3 Chapter 2 Regulatory Restructuring Exhibit 2.05 China s Financial Regulatory Structure Source: Cerulli Associates State Council Financial Stability and Development Committee People's Bank of China (PBoC) State Administration of Foreign Exchange (SAFE) Monetary policy Macro-prudential management China Banking Regulatory Commission (CBRC) China Securities Regulatory Commission (CSRC) China Insurance Regulatory Commission (CIRC) Banks, trusts, four financial asset management companies, non-bank deposit financial institutions, P2P, etc. Securities companies, futures companies, fund management companies, exchanges, Asset Management Association of China (AMAC), etc. Insurance companies, insurance asset management companies, Insurance Asset Management Association of China (IAMAC), etc. 30 The Cerulli Report Asset Management in China 2017

4 Table of Contents Table of Contents: Expanded Methodology Executive Summary Key Questions Answered What key industry trends in China in 2017 should asset managers take note of? How should managers align their business strategies with the evolving regulatory system? What is the competitive landscape like for foreign asset managers? What is the state of China s retirement market and how can managers access it? Exchange Rates Exchange Rates...18 Chapter 1: Overview of Key Asset Management Trends in China Exhibit 1.01 Chinese Asset Management Industry Snapshot, Q Exhibit 1.02 Approved List of Public Funds of Funds, September Exhibit 1.03 Products of Fund Management Companies and Private Fund Companies, June Exhibit 1.04 Robo-Advisors in China...24 Exhibit 1.05 Snapshot of Portfolios and Subscribers to NetEase Dr.8, September Chapter 2: Regulatory Restructuring Exhibit 2.01 Banks Wealth Management Product Assets Under Management, Exhibit 2.02 Breakdown of China s Asset Management Industry, Exhibit 2.03 Two Examples of Closed-Loop Investment of Banks Assets...28 Exhibit 2.04 Key Decisions Made at National Financial Work Conferences, Exhibit 2.05 China s Financial Regulatory Structure...30 Exhibit 2.06 Timeline of Key Regulatory Efforts in China s Asset Management Industry, July 2016 July Exhibit 2.07 Example of How a Fund Management Company s Business Can Be Split into Different Subsidiaries...34 Chapter 3: Competitive Landscape Exhibit 3.01 Chinese Mutual Fund Assets Under Management by Manager Type, 2011 June Exhibit 3.02 Largest 20 Mutual Fund Managers in China, June The Cerulli Report Asset Management in China

5 Table of Contents Exhibit 3.03 Largest 20 Wholly Local Mutual Fund Managers in China, June Exhibit 3.04 Chinese Qualfied Domestic Institutional Investor Funds, Q Exhibit 3.05 Companies With Funds Approved or Pending Approval on the Mutual Recognition of Funds Scheme, August Exhibit 3.06 Wholly Foreign-Owned Enterprise License Holders and Their Other Businesses, September Exhibit 3.07 Chinese Private Fund Industry Snapshot, 2014 June Exhibit 3.08 Number of Registered Private Fund Managers by Type and Size, August Exhibit 3.09 Process to Launch Private Funds Through Wholly Foreign-Owned Enterprises in China...49 Chapter 4: Pensions Exhibit 4.01 Chinese Demographics, E...51 Exhibit 4.02 Chinese Retirement Market Size, Exhibit 4.03 List of Qualified Onshore Fund Managers for Chinese Pension Business, August Exhibit 4.04 Snapshot of the First Pillar of the Chinese Pension System, Exhibit 4.05 Selected Chinese Retirement Scheme Returns, Exhibit 4.06 Snapshot of the Second Pillar of the Chinese Pension System, Exhibit 4.07 Chinese Pension Insurer Assets Under Management and Assets Under Entrustment, Q Exhibit 4.08 Chinese Pension Insurer Assets Under Management and Assets Under Entrustment by Company, Q Exhibit 4.09 Snapshot of the Third Pillar of Chinese Pension System, Chapter 5: Retail Business Exhibit 5.01 Chinese Mutual Fund and Exchange-Traded Fund Assets Under Management, Q Exhibit 5.02 Breakdown of China s Assets Under Management by Sector, Q Exhibit 5.03 Chinese Open-End Mutual Fund Assets Under Management by Investment Objective, Q Exhibit 5.04 Chinese Open-End Mutual Fund Net New Flows by Investment Objective, Q 2017 YTD...69 Exhibit 5.05 Chinese Mutual Fund Assets Under Management by Investor Type, Exhibit 5.06 Chinese Mutual Fund Assets Under Management by Distribution Channel, Exhibit 5.07 Chinese Fund Management Industry Entrants, Exits, and Expansions, August 2016 July Exhibit 5.08 Cerulli Asset Manager Survey Respondents Biggest Concerns for China s Retail Business, Exhibit 5.09 Cerulli Asset Manager Survey Respondents Views on Product Features That Appeal to Retail Investors in China, Exhibit 5.10 Fundraising Results of New Funds Launched in China, Q 2017 YTD...77 Exhibit 5.11 Chinese Mutual Fund Management Company Open-End Product Application Status, July Exhibit 5.12 Chinese Mutual Fund Fees and Distribution Charges, Exhibit 5.13 Largest 20 Mutual Fund Managers in China, Q Exhibit 5.14 Fully Operational Joint Venture Assets Under Management, Q The Cerulli Report Asset Management in China 2017

6 Table of Contents Chapter 6: Institutional Business Exhibit 6.01 Largest 10 Chinese Institutional Investors by Assets Under Management, Exhibit 6.02 Chinese Institutional Investable Assets, Exhibit 6.03 Chinese Institutional Addressable Assets, E...89 Exhibit 6.04 Chinese Discretionary Assets Breakdown, 2012 June Exhibit 6.05 Chinese Discretionary Assets by Fund Management Company and FMC Subsidiary, 2Q Exhibit 6.06 Snapshot of the Chinese Pension System, Exhibit 6.07 Chinese National Social Security Fund Assets by Management Type and Annual Return, Exhibit 6.08 China s Enterprise Annuity: Investment Management Licensees, Q Exhibit 6.09 Chinese Enterprise Annuities Average Management Fees and Assets Under Management by Product Type, Q Exhibit 6.10 The People s Bank of China s Foreign Exchange Reserves, 2012 June Exhibit 6.11 CIC International s Global Investment Portfolio, Exhibit 6.12 CIC International s Global Investment Portfolio by Investment Objective, Exhibit 6.13 Chinese Life Insurance Total Premiums, 2012 June 2017 YTD Exhibit 6.14 Largest 10 Chinese Life Insurance Companies by Premiums, 2015 June 2017 YTD Exhibit 6.15 Chinese Life Insurance Company Investable Assets, 2012E June 2017E Exhibit 6.16 List of Insurance Asset Management Companies, July Exhibit 6.17 List of Insurance Companies Obtaining Approval for Overseas Investment, 2013 July Exhibit 6.18 Chinese Total Foreign Investments, 2012 March Chapter 7: Competing Products Exhibit 7.01 Snapshot of Selected Financial Products in China, June Exhibit 7.02 Performance of Banks Wealth Management Products, August 2016 July Exhibit 7.03 Registered Private Funds in China, August 2016 July Exhibit 7.04 Chinese Trust Assets Under Management and Asset Breakdown, 3Q Q Exhibit 7.05 Securities Firms Assets Under Management by Plan Type, 3Q Q Exhibit 7.06 Growth of Online Peer-to-Peer Products, January 2016 July Exhibit 7.07 Chinese Investment-Linked Product Assets Under Management by Asset Class, Exhibit 7.08 Asset Management Products Launched by Futures Companies, July 2016 June Chapter 8: Cross-Border Schemes Exhibit 8.01 Channels for Accessing Onshore Investments in China Exhibit 8.02 Total Qualified Foreign Institutional Investor Quota Awarded by Year, 2003 July 2017 YTD Exhibit 8.03 Qualified Foreign Institutional Investor Quota by Institution Type and Region, June 2016 June The Cerulli Report Asset Management in China

7 Table of Contents Exhibit 8.04 Renminbi Qualified Foreign Institutional Investor Investment Quota by Geography and Number of License Holders, July Exhibit 8.05 Comparison of Pilot Outbound Schemes Across Selected Pilot Cities Exhibit 8.06 Part 1. Shanghai-Hong Kong Stock Connect Trade Flows, August 2016 July Exhibit 8.06 Part 2. Shenzhen-Hong Kong Stock Connect Trade Flows, December 2016 July Exhibit 8.07 Hong Kong-China Mutual Recognition of Funds: List of Approved Northbound and Southbound Funds, July 2016 August Exhibit 8.08 Mutual Recognition of Funds Net Capital Flows, January 2016 July Appendix Exhibit A.01 Hong Kong-China Mutual Recognition of Funds: Northbound Fund Application Status, August Exhibit A.02 Hong Kong-China Mutual Recognition of Funds: Approved List of Southbound Funds, August Exhibit A.03 List of Fund Managers and Bank Custodians With NSSF Mandates, August Glossary Index of Companies The Cerulli Report Asset Management in China 2017

8 Index of Companies ABCI Asset Management Aberdeen Asset Management... 22, 37, 43 AEGON-Industrial Fund Management... 40, 64 Alibaba...13, 22, 23, 64, 117 Alinda Capital Partners Alipay... 71, 72 Allianz...43 Amundi... 43, 131 AnBang Insurance Ant Financial...64, 71, 117, 132 Antarctica Capital Ashmore-CCSC Fund Management...84 Baidu Bank of China Investment Management... 40, 43 Beijing Chang an Group...74 BlackRock... 40, 43 BNY Mellon...49 Bosera... 54, 64, 88 CCB Principal... 33, 36, 40 China Asset Management...35, 40, 54, 65, 88 China Construction Bank (CCB)...40 China International Fund Management...40 China Investment Corporation (CIC)...100, 101, 109 China Life... 59, 101, 103, 104 China Merchant Bank (CMB)...23, 111, 113 China Pacific , 104 China Post & Capital Fund...74 China Post & Capital Fund Management...74 China Universal Asset Management... 35, 65 CIB Fund Management...40 Citibank...43 CITIC Securities Creditease , 113 Dacheng Fund Management... 54, 88 Deutsche Asset Management...38 The Cerulli Report Asset Management in China

9 Index of Companies East Money...71 Fidelity... 13, 22, 43, 44, 47, 48, 67 Fortune SG Fund Management...42 Franklin Templeton...43 Fullerton Fund Management...13, 22, 44, 47 Fullgoal...81 Funde Sino Life Guohua Life Harvest Fund...33, 38, 40, 43 Hong Kang Life HSBC...43 HSBC Global Asset Management... 43, 62 HSBC Jintrust...62 ICBC Credit Suisse Asset Management...33, 38, 40, 81 Industrial Bank...40 InterPark Invesco Great Wall Fund Management...40 J.P. Morgan... 16, 37, 40, 43, 132, 133 JD Finance... 13, 64 Juaicai Plus...23 Legg Mason...43 Lufax Man Group...13, 22, 44, 47 Mirae Asset...44 NetEase...23 New China Life Noah Holdings Penghua Fund Management...40 Pictet...43 Ping An... 23, 40, 59, 103, 110 Ping An UOB Fund Management... 40, 81 Pintec...23 Principal Financial Group...40 Rongtong Fund Management...40 Russell...65 Schroders... 43, 44 Shanxi Trust and Investment Corporation...62 Société Générale... 33, The Cerulli Report Asset Management in China 2017

10 Index of Companies Standard Chartered Bank...43 Taikang...58, 120, 122 Taiping Fund Management...84 Taiping Life TI Private Investments Tianhong Asset Management...21, 33, 64, 132 TianTian Fund...72 Total Invest Group Asset Management Truvalue Asset Management...79 UBS Asset Management...13, 22, 44, 47 Value Partners... 44, 49 Warburg Pincus... 33, 42, 74 WeChat... 22, 71, 132 Xuanji...23 Yinhua Fund Management... 54, 88, 131 Zeal Asset Management Zhong Ou Asset Management...74 The Cerulli Report Asset Management in China