Global Asset Managers Capture 0.1% of China’s Rmb36.5tn Fund Market in 5 Years

1 articles · Updated · Financial Times · Jun 1

Rmb34bn is all six wholly owned foreign mutual fund houses have gathered in China since 2020, despite roughly $800mn of investment and Beijing’s ownership liberalization.
Distribution hurdles, weak brand recognition, fierce local competition, worsening US-China relations and China’s property slump have all slowed growth, leaving many firms below Z-Ben’s Rmb25bn break-even threshold.
Neuberger leads the group with more than Rmb14bn at end-March—later rising to Rmb19bn—followed by BlackRock at Rmb11bn and Fidelity at Rmb4bn; the other three manage far less.
Schroders has already decided to exit its mainland mutual fund business after three years, transferring three funds and an investment team to Neuberger while keeping a China presence through joint ventures.
Foreign managers that expanded by buying out Chinese joint-venture partners have fared better, amassing about Rmb373bn, or roughly 1% of the market—still a small share of China’s Rmb36.5tn industry.

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