trends in chinese fund industry

8/4/2019 Trends in Chinese Fund Industry

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Trends in Chinese Fund Industry

Yang Lu

Feb. 20, 2011


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Rural to Urban

Ref: The two million minutes blog: http://2mm.typepad.com/usa/2010/11/chinas-shifting-population.html
http://2mm.typepad.com/usa/2010/11/chinas-shifting-population.htmlhttp://2mm.typepad.com/usa/2010/11/chinas-shifting-population.htmlhttp://2mm.typepad.com/usa/2010/11/chinas-shifting-population.htmlhttp://2mm.typepad.com/usa/2010/11/chinas-shifting-population.htmlhttp://2mm.typepad.com/usa/2010/11/chinas-shifting-population.htmlhttp://2mm.typepad.com/usa/2010/11/chinas-shifting-population.html


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GDP

Ref: Emerging market valuation: http://blog.tropenas.com/?p=12
http://blog.tropenas.com/?p=12http://blog.tropenas.com/?p=12


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Fund companies


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Outline

Current situation

Fund types

Trends

Observations


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Current situation

68 companies, 33 domestic, 35 mixed

AUM 2.5 or $380B

AUM = 6% GDP compared to 76% in US

Largest 10 companies have half the AUM


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Funds

642 open funds, 49 closed

Styles: stock, bonds, mixed, etf, qdii


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Stock funds

growth value dividend

quality index total return

growth value strength

large cap mid and small captrend balanced focused growth

healthcare sector rotation

internal demand

consumption

coastal region flexible portfolio

public works quant alpha


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Bond funds

bond fund

stable return

enhanced returntranche return

convertible bond

actively managed bonds


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Mixed

two incomes

selection

multiplevalue appreciation

regional strength

balanced


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ETF

stock market indexetflarge capetfmid and small capetfdividendetf

growthetfleaderetfconsumer sectoretfvalueetf

social responsibilityetfcommodityetfgov enterpriseetfprivateetf


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QDII

globalHKAsia pacificAsia ex JapanSP500

BRICNasdaq100EMoff shore listedgold

greater Chinaglobal resourcesanti-inflation


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Trends

Influx of experienced managers from outside

More domestically established managers

Separable funds: F A + B (one is more

levered, one less) More ETFs

More QDII

Commodity funds

Long-short products

Stock options


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Observations

more Less

flexibility style stickiness

game theory Fundamental

capital adjustment full investment

Growth cumbersome regulation


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Contributors

Dr. Zheng Wang, CIO of active strategies and ETF at Bosera

Mr. Tony Liu, portfolio manager at China Merchant Funds

Dr. Shujing Li, official at CSRC

Ms. Hangqing Tian, official at CSRC

Dr. Ben Zhang, Haitong Securities Co.


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trends in chinese fund industry

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