The sum Chinese institutions allocate for onshore investment mandates is predicted to grow more than four times over by 2020, says an estimate.
Shanghai-based consultancy Z-Ben Advisors predicts the amount will rise from $240 billion in 2014 to $1.2 trillion in 2020 – providing opportunities for China-focused asset managers across a range of asset classes.
The growth will come partly due to a rise in overall institutional assets in China, which are predicted to grow by two-thirds to $18 trillion by 2020, and partly because institutions are expected to make more of their onshore investments "addressable" by asset managers.
"Z-Ben Advisors believes that competition between domestic firms will remain relatively unchanged," says the consultancy, in a report. "However, the presence of foreign managers onshore may transform segments previously insulated from competition. These disrupters are likely to create opportunities in mixed currency, cross-border, fixed income and alternative products."
The consultancy predicts the growth of offshore Chinese institutional investment mandates will proceed far more slowly, rising from $410 billion in 2014 to an estimated $490 billion in 2020.
Z-Ben Advisors has released sample pages of its report.
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