Ignites Asia News Brief
Welcome to Ignites Asia's News Brief, a roundup of a few of our top stories from the past week.
Hong Kong fund firms should consider looking for other opportunities outside China, according to BEA Union Investment Management CEO Janet Li. Many local fund houses have relied on mainland China's economic development for flows, Li said, but the onshore market's ongoing economic transformation will "inevitably bring difficulties".
Hong Kong also needs more products that invest in local assets to foster more talent in portfolio management, she added. Read more about the BEA Union IM CEO's views here.
Foreign asset managers are lobbying Chinese regulators to relax an unofficial AUM criteria to qualify for the QDII scheme. Industry participants say the unspoken expectation to raise Rmb20 billion (US$2.76 billion) in two years in order to be approved to sell funds with overseas exposure to onshore investors is a tall order in the current economic environment.
Global managers who have retail business units in China see the QDII as a key differentiator versus their domestic rivals. Read more about how foreign firms are faring in the onshore retail space here.
Chinese regulators have launched "surprise" inspections on fund firms after the new regulatory head pushed for a stricter governance approach earlier this month. Industry participants say the inspections come with little notice and a lack of clarity around what regulators are looking for.
The CSRC has been placing greater scrutiny on regulatory compliance within the funds industry in recent months, but firms warn that adding more layers of compliance may make it difficult for some businesses to survive. Read more about the inspections here.
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Private equity fundraising in Asia Pacific fell to its lowest level in a decade last year as funds grappled with slowing economic growth and rising rates. Investors stepped back from Greater China deals in particular. Read about where private equity investors are investing in the region here.