Chinese banks' large-scale outsourcing of fixed income investments could stretch domestic fund houses' capabilities for managing risk and increase the possibility of a blowup.
Toby Yiu
Struggling to provide steep returns on their wealth management products, Chinese banks are allocating to higher-risk bond funds, driving a fast rise in mainland managers' institutional AUM.
Shanghai has drafted eagerly awaited changes to its qualified domestic limited partnership scheme. Foreign asset managers are also hoping for clarity on Chinese mutual fund licences.
With Sino-US tensions mounting over Donald Trump's plans for trade protectionism, among other things, mainland institutions are seen to be eyeing foreign assets outside America.
The fund house is the first foreign firm to win approval to manufacture private funds for onshore institutional and high-net-worth clients. And further licences are in the pipeline.
The Hong Kong watchdog's investment products head pointed to the imbalance of fund flows under the mutual recognition scheme. She also commented on the SFC's fee-disclosure proposals.
The mainland insurance watchdog is introducing new restrictions on insurers' equity investments, after the securities regulator slammed heavily leveraged takeovers.
Sandra Lu, partner of law firm Llinks, expects the first batch of wholly foreign-owned entities to register for private fund businesses in the next month or two.
Fund executives put the territory well ahead of mainland Chinese cities and Singapore in this regard, despite certain reservations, finds a survey by BBH due for release today.
A widely diversified business model in Asia is too costly for most asset managers amid rising costs and competition, argues the consultancy: they must allocate resources better.
First State Super appoints new CIO; Ontario Teachers promotes Taylor; Eastspring HK CEO departs; AIA seeks Australia CIO; Dominic Lane exits HSBC PB; Wing Lung PB head moves on; Deutsche WM adds Greater China MD; HK wealth association names head.
The Swiss asset and wealth manager is shutting its Hong Kong operation, a move that came as no surprise to market observers. More industry closures and consolidation are expected.
