Why few foreign funds are entering China’s $3tr mutual fund market

A year after China fully opened its massive mutual fund industry to direct foreign manager participation, many international players are still taking a “wait and see” attitude towards the $3.34 trillion market. Their caution is simple: many difficulties lie ahead, and there are few ways to easily resolve them. Chinese regulators now allow foreign managers that hold a private fund management (PFM) licence to convert their businesses into a public fund management company (FMC), or…