China’s 2018 Asset Management Market: Slower Growth and Structural Change
Summary
This 2019 outlook reviews China’s financial product and asset management markets amid regulatory change. It argues that rapid market expansion had already slowed before the new asset management rules, with aggregate assets contracting in 2018. The report describes a shift toward net-asset-value products and away from channel-driven structures, linking the transition to reduced implicit liabilities and broader deleveraging. It also reviews trust, private fund, and public fund segments.
The report notes declining trust balances and a move toward active management, slower private-fund growth alongside relatively better results for quantitative products and CTA strategies, and public-fund growth led by money-market and bond funds while equity funds weakened. It anticipates further industry concentration and potential opportunities in bank wealth management and retirement products. These observations and forecasts reflect conditions around 2018; the document is a market outlook rather than a trading strategy, and its forward-looking claims should not be treated as current market data.
Key ideas
- China’s asset management market growth had slowed before the 2018 regulatory changes and contracted that year.
- The rules accelerated a shift toward net-asset-value products and away from channel business.
- Trust businesses were shrinking and expected to focus more on active management and wealth services.
- Private-fund growth slowed, while quantitative and CTA products performed relatively better in the period reviewed.
- Public-fund assets grew mainly through money-market and bond products as equity funds weakened.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.