China's asset management industry tops $7.5trn

Added 9th February 2017

Assets under management across mainland China rose by 36% to 51.8trn renmimbi ($7.53trn, £6.0trn) in 2016 according to data from the semi-official Asset Management Association of China (AMAC).

China's asset management industry tops $7.5trn

The figure is for all mutual and private fund management houses and securities and futures firms in China. 

But the yearly growth rate has slowed from 86% in 2015, AMAC data showed, amid a regulatory crackdown on fund subsidiaries as well as private securities fund companies, which both target mainly insitutional or high net worth investors.

 

China's asset management business (RMBtrn)

 

 2016

(y-o-y growth)

 2015

(y-o-y growth)

 2014

 Mutual funds under fund  management companies

 9.16 (+9%)

 8.40 (+85%)

 4.54

 Fund subsidiaires

 16.89 (+34%)

 12.60 (+114%)

 5.88

 Securities companies

 17.58 (+48%)

 11.89 (+50%)

 7.95

 Futures companies

 0.28 (+180%)

 0.10 (-17%)

 0.12

 Private fund management   (paid-in capital for hedge, VC and PE) 

 7.89 (51%)

 5.21 (+145%)

 2.13

 Total

 51.8 (+36%)

 38.2 (+86%)

 20.5

Source: AMAC

 

Mutual fund assets had a slight expansion after the demand in bond funds offset the outflows in equity and money market products.

Overall committed capital for PFM assets reached RMB 10.2trn, surpassing that of mutual fund assets for the first time. 

The PFM companies can be categorised as private securities funds, or more commonly known as hedge funds, private equity and venture capital funds.

Foreign managers setting up an investment management wholly foreign-owned enterprise (WFOE) to launch investment products, such as Fidelity, will be competing with onshore managers of private securities funds, which are similar to hedge funds. 

Total AUM under the private securities fund business hit RMB 2.6trn at the end of 2016, up 51% from a year ago. The number of such products also surged 71% to 25,950.

A further look at the number of registered PFM companies showed a significant drop from 2015.

 

Number of registered PFM companies

 Type of PFM firms

 2016-end

 2015-end

 Private securities fund

 7988

 11782

 Private equity fund

 1218

 1459

 Venture capital fund

 446

 799

 Total

 17433

 25005

Source: AMAC

 

 

 

 

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