China’s asset management industry witnessed double-digit growth last year in the face of a volatile market and major disruptions from the Covid-19 pandemic. Total assets under management (AUM) reached 58.99 trillion yuan (US$9.2 trillion), up 12% from 52.23 trillion yuan in 2019.
Many outstanding asset servicing providers outperformed, surpassing the market growth in assets under custody (AUC). This was due to solid technological capabilities that enabled remote working during the peak of the health crisis in the first quarter of last year, but also a result of the strong market growth, particularly in private funds.
Supported by institutional investors and high net worth individuals, private funds shot up 65% to 4.3 trillion yuan from 2.6 trillion yuan. Securities companies worked aggressively to increase their market share in this space.
Mutual funds also made a strong showing, expanding their AUM by 35% to 20 trillion yuan for the first time, from 15 trillion yuan in 2019.
With booming business from asset managers, major asset servicing providers among Chinese banks such as Bank of China, Bank of Communications and ICBC recorded double-digit growth in AUC. Among securities companies, top players such as China Merchants Securities, CITIC Securities, and Guotai Junan Securities saw even more robust growth.
As China further opens up its markets, foreign asset managers are actively setting up businesses through structures such as the wholly foreign-owned enterprise - private fund management (WFOE PFM). The Asset sets up a new category this year to recognize the best performers in this space.
Against this backdrop, The Asset announces the "Best Asset Servicing Awards, China onshore" winners of The Asset Triple A Sustainable Investing Awards for Institutional Investor, ETF, and Asset Servicing Providers 2021.
For the list of winners, please click here.