FleishmanHillard China Asset M – GuruFocus.com
Demand for onshore retail funds from foreign asset managers is strong as foreign competition in China’s retail fund industry becomes a reality
HONG KONG, September 1, 2021
HONG KONG, September 1, 2021 / PRNewswire / – Chinese investors are paying more attention to the environmental, social and governance (ESG) commitments and offerings of foreign asset managers when considering investing, according to The future of asset management in China 2021 study published today by FleishmanHillard.
The report offers insights to global asset managers who assess opportunities in China. This is the third annual edition China-a focused asset management report published by FleishmanHillard and its practice TRUE Global Intelligence, and features analysis from an online survey of mainland Chinese investor attitudes and behaviors, as well as an overview of the latest trends in the sector.
With the growing interest in ESG investing, it should be noted that in total, 95% of Chinese investors believe that strong ESG product offerings are “very important” or “somewhat important” for managers. of foreign assets operating in China. This ranks on par with transparency in fee information (95%), followed by transparency in communications with customers (94%). Additionally, just over half of Chinese investors (53%) rate an asset manager’s commitment to ESG as ‘very important’, with two-fifths (43%) saying it is. “Somewhat important” – making it the third most important factor when choosing an asset manager. The credibility (61%) and performance (58%) of the asset management company remain the main decision makers.
Overseas asset managers strive to offer retail onshore funds directly in China for the first time this year is expected to see strong demand for their products, with 95% of Chinese investors saying they would be “extremely” or “very interested” in such offers in the market.
“China emerges from the pandemic in a position of strength, which is fueling the growing confidence of local investors and in turn benefiting the demand for the services of foreign asset managers as they enter this fast-opening market, ”said Patrick yu, Asia Pacific FleishmanHillard’s Financial and Professional Services Practice Director. “With full foreign competition in from China With the asset management industry becoming a reality, it has never been more important for industry players to understand the needs of Chinese investors and have a strong communication strategy that addresses these sentiments and supports business expansion in the country. ”
The investigation also revealed:
- Domestic Qualified Limited Partnership (QDLP) and private market funds of foreign asset managers continue to attract interest from Chinese investors. Ninety-five percent of investors are interested in QDLP funds, while 93% have purchased private market funds from foreign asset managers with All-Foreign Enterprise (WFOE) licenses. Better product performance and a clear investment strategy are the main reasons why investors choose products from foreign asset managers over onshore products from their local counterparts.
- Over the next 12 months, investors will be interested in China/ Hong Kong SAR focused liquid asset fund. It is clear that Chinese investors are looking for broader global exposure to liquid assets in their portfolios over the next 12 months, closely followed by allocations closer to home in China and Hong Kong SAR. Interestingly, however, local investors are as interested in cryptocurrency funds as they are in fixed income funds and Exchange Traded Funds (ETFs), despite recent price swings.
- WeChat is important in reaching Chinese investors, but independent financial advisers, banking intermediaries, and financial media are also important. Thirty-seven percent of investors use WeChat to obtain information about funds and investment products, of which 73% have used the platform to find information on companies (global and China) – a significant increase of 19% compared to last year (54%). However, independent financial advisers or intermediaries in banks and the financial media also remained the most important sources of information.
- from China an effective response to COVID-19 has boosted the confidence of Chinese investors. There has been an increase in the number of people who are now confident in their personal financial situation and believe the pandemic is having no impact – 34%, up from 23% last year. The feeling reflects from China rapid and effective response to COVID-19 and the rapid return to normalcy in the country.
- United States in progress-China trade tensions lead to a more “risk-letting go” feeling for local Chinese investors. Compared to the fairly even split last year between investors who were more “at risk” and those who were more “at risk”, the needle seems to have shifted more in the direction of a feeling of lower risk. , because tensions are expected to continue in the long term. . In total, 53% of respondents say they shift more or a portion of their investments to lower risk options, compared to 32% who have a higher risk appetite.
FleishmanHillard’s The future of asset management in China 2021 report includes qualitative and quantitative data. FleishmanHillard TRUE Global Intelligence conducted an online survey of 260 Chinese investment professionals between July 16-22, 2021. All survey respondents identified themselves as working in investment, finance or banking, and had traded or invested in at least one of the following: equity funds (95%), fixed income ( 89%), ETF (88%), hedge funds (57%), balanced funds (86%) or PE funds (78%).
About Fleishman Hillard
FleishmanHillard specializes in public relations, reputation management, public affairs, brand marketing, digital strategy, social engagement and content strategy. FleishmanHillard was named Global Public Relations Agency of the Year for the 2020 Campaign; Large exceptional PRWeek agency in the United States in 2019; 2019 Holmes Report North America Top Agency of the Year; ICCO Network of the Year – Americas 2017-2020; PROvoke Media Greater China Tip of the Year 2020; PRWeek UK Best Places to Work 2020; Human Rights Campaign Best Workplaces for LGBTQ Equality 2018-2020; and NAFE’s “Best Companies for Women Executives” 2010-2020. The company’s award-winning work is widely praised, especially at the Cannes International Festival of Creativity. FleishmanHillard is part of Omnicom Public Relations Group and has 80 offices in over 30 countries, as well as subsidiaries in 50 countries.
About Omnicom Public Relations Group
Omnicom Public Relations Group is a global collective of three of the world’s top public relations and agencies specializing in areas such as public affairs, marketing to women, global health strategy and corporate social responsibility. It encompasses more than 6,300 public relations professionals in more than 370 offices around the world who provide their expertise to businesses, government agencies, NGOs and non-profit organizations in a wide range of industries. Omnicom Public Relations Group serves its clients by relentlessly focusing on talent, the continued pursuit of innovation and a culture rooted in collaboration. Omnicom Public Relations Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. (NYSE: OMC) which includes more than 200 companies in a wide range of marketing disciplines including advertising, public relations, healthcare health, customer relationship management, events, promotional marketing, branding and research.
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SOURCE FleishmanHillard Inc.