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Citi Transaction Services | Citi OpenInvestor
• Losses in equity markets over the
period have made it very diffcult
for fund managers to maintain
performance, and have limited
general interest in the fnancial
services industry.
• Insuffcient product diversifcation
among nearly all segments, and
within all product categories,
has meant that few frms have
individually distinguished offerings.
• Investors have extremely limited
loyalty for any given frm or
product, and as a result, building
client relationships is very diffcult.
• Domestic distribution architecture
and the dominance of banks as
the primary sale channel has
been a persistent problem, which
has yet to lead to the creation of
alternative outlets.
In China, funds are bought, not
sold, and this has led to a situation
whereby a limited number of investors
are constantly churning their fund
holdings between a handful of
managers and products.
Asset Management Overview
China’s asset management industry — the public portion of it, at least — has been relatively
stagnant over the past four years. Following the run-up in equities seen in 2007, even the most
successful frms have struggled to simply maintain market share. There are numerous reasons
for this state of affairs:
“…the future of asset
management in China is
bright, and the shift toward
a fnancial industry more
reminiscent of developed
markets has already started.”