China and the World: The Future of Asset Management
China’s economic reforms began 40 years ago, following which the world’s most populous nation’s economy vaulted from the 10th largest in the world to number two. By 2018, China had created a $25 trillion capital market–second in size only to the US–with $13 trillion in equity market capitalization on the Hong Kong, Shanghai and Shenzhen stock exchanges, and $12 trillion in various fixed income instruments traded in the interbank markets.
It should come as little surprise that this has paved the way for a flourishing domestic asset management industry. The only surprise is quite how quickly Chinese asset managers are growing. By the end of 2018, Chinese asset managers were closing in on their rivals in the US, taking the number two spot among global fund management markets.