First HK spot bitcoin ETFs listed – Global firms 'cautious' about new China units – Value Partners layoffs, CEO departure
Welcome to Ignites Asia's News Brief, a roundup of a few of our top stories from the past week.
Hong Kong saw the listing of its first spot bitcoin and ether ETFs by the local units of three Chinese fund firms this week. But the debut of the first spot crypto ETFs anywhere in Asia didn't quite match 'the hype', with trading volumes far below what equivalent ETFs listed in the U.S. achieved in January.
Sources told Ignites Asia that some U.S. fund firms have explored cross-listing their U.S. spot bitcoin ETFs in Hong Kong, with Ark Invest named as one of the firms making enquiries. Read more about the buzz around Hong Kong's new spot crypto products here.
Global asset managers are now 'more cautious' about forming new mutual fund businesses in China, experts say. Geopolitical worries, rising costs and concerns about profitability timelines are keeping foreign firms on the sidelines or pushing them towards easier routes into the market.
UBS has reportedly paused plans for a wholly owned retail fund company in China due to worries about high costs. And after Allianz Global Investors won approval to commence operations last month the pipeline of fund management company applications from foreign firms appears to have dried up. Read more about greater caution towards the Chinese market here.
Hong Kong-listed fund house Value Partners has laid off about one third of its employees in China where its private funds business has been struggling. The layoffs came just days before the firm's CEO June Wong resigned suddenly after less than two years in the role.
The China-focused funds business has been diversifying into new markets, but has continued to see its assets fall, slumping to US$5.3 billion at end-March down from US$18.27 billion in April 2019. Read more about the firm's trials and tribulations here.
Secure your pass for Future of Asset Management Asia
Please join Ignites Asia and the Financial Times in Singapore on 8 May for Future of Asset Management Asia.
领英推荐
This must-attend event will gather leading executives from the top asset management firms across Asia to connect, engage and keep you ahead of key trends impacting the region. Hear, too, from regulators on what to expect next.
Learn more about the agenda, speakers, and pass types here.
Graph of the week
Rising geopolitical worries and ongoing economic challenges in China are driving global investors into funds with "ex-China" in their title. Monthly inflows into such strategies hit an all-time high of nearly US$2 billion in March 2024, with BlackRock's iShares MSCI Emerging Markets Ex-China ETF in the U.S. picking up the lion's share of recent flows. Read more about expectations that appetite for these strategies will continue to grow this year here.
Keep Reading...