China’s financial services industry is transforming at a rapid pace. Chinese policymakers have committed to opening domestic capital markets, which will create opportunities for Chinese individuals and investors, as well as domestic and global financial institutions.To get more International finance news china, you can visit shine news official website.
Chinese individuals have historically saved more than any other nation, with the majority of savings ending up in bank deposits or housing investments. As China’s population continues to age — and economic growth continues to slow due to COVID-19 — it is critical that Chinese investors can access safe and sustainable investment options to plan for retirement and other major life expenditures in a sophisticated way.
This is where asset managers come in. Asset managers, who match savings and retirement money with investment opportunities, are particularly important in this transformation. Within the past decade, the industry’s total assets under management (AUM) have grown tenfold, reaching about 110 trillion renminbi (~$16 trillion) by the end of 2019.
The World Economic Forum, together with its knowledge-partner, Oliver Wyman, convened Chinese and global leaders from the financial industry, regulatory organizations, central banks and academia to explore how this transformation must be shaped to create a stable and accessible industry best positioned to contribute to economic growth and prosperity. We just published the findings in the report China Asset Management At an Inflection Point.
We learned that evolving regulation and the overhaul of China’s pension system will impact the direction of industry development. But there is an additional, sometimes less-understood dynamic in play: the role of financial technology in China.
Fintech will fundamentally reshape how customers interact with financial institutions and how financial institutions create new sources of differentiation. As just one example, innovations in selling investment products, such as Yu’e Bao — using funds deposited in Alipay e-wallet to invest in money market funds — is unheard of outside of China. But since emerging in 2013, it is now managing trillions of investors’ funds.