This is How Much China’s Mutual Fund Industry Could Grow

https://dailyalts.com/wp-content/uploads/2019/11/55e2d5454f51ac14ea898579ce203e7c1d22dfe05452704a772c7dd0_640.jpg

Hua An Fund Management issues a startling projection for the Chinese mutual fund market.

The Chinese mutual fund market could jump 10-fold over the next decade. This prediction comes from Hua An Fund Management portfolio manager David Hu. The manager said that index-tracking mutual funds could reach 6 trillion Yuan in 10 years (or $857.29 billion.)

“Efficiency of China’s market is rapidly rising,” said Xu, who oversees indexing and quant strategies and $5 billion in various passive funds. Xu’s prediction came during an interview at the Reuters 2020 Investment Outlook Summit.

Chinese Mutual Fund Growth

This isn’t the first time that analysts have set aggressive targets for the Chinese mutual fund market. In 2018, UBS analyst Kelvin Chu suggested that China would offer the “single largest growth opportunity” for global managers.

However, UBS said that the industry would require greater cooperation from regulators across the country.

“The opportunity is substantial but it all depends on the progression of reform and deregulation,” said Chu.

Decoupling Threat

Meanwhile, as the U.S. and China continue to work through details of a trade deal, investors are eyeing both markets. Furthermore, Chinese fund manager Richard Pan told Reuters this week that foreign ownership of A-shares in China will top 10% in a decade. That figure would be up from 2.7%, according to the head of international business at China Asset Management.

Related: US Blacklists Chinese AI Organizations Including Leading Startups

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/02/work-5382501_640.jpg
Venture Capital: Bessemer Venture Raises $3.3B For Two New Funds, Welcomes New Partners
February 26, 2021     News, Venture Capital

Global early-stage venture capital firm Bessemer Venture Partners announced Thursday its raise of $3.3 billion across two new funds. BVP XI, which collected $2.475 billion, will focus on early-stage companies…

https://dailyalts.com/wp-content/uploads/2021/02/house-4516175_640.jpg
Alternative Investments/Real Estate: New Active, REIT-Based ETF From SS&C ALPS
February 26, 2021     Alternative Investments, News, Real Estate

SS&C ALPS Advisors have launched an actively managed, semi-transparent ETF that focuses on the U.S. REIT securities market. The ALPS Active REIT ETF (REIT) will trade on the NASDAQ.

https://dailyalts.com/wp-content/uploads/2021/02/the-rivergreen-centre-atom-hq.jpg
FinTech: U.K.-Based Atom Bank To Raise £40M To Become Profitable, Go Public
February 26, 2021     FinTech, News

Atom Bank, which is based in Durham, U.K., plans to raise £40 million from its existing shareholders in a move to achieve profitability within a year. The digital bank also…

https://dailyalts.com/wp-content/uploads/2021/02/Anchorage-Leadership.jpg
Digital Assets: Anchorage, The First Federally Chartered Digital Bank, Raises $80M
February 26, 2021     Digital Assets, News, Venture Capital

Federally chartered digital bank Anchorage announced Thursday its Series C raise of $80 million led by GIC, Singapore’s sovereign wealth fund, with participation from a16z, Blockchain Capital, Lux, and Indico.