Asset Management Industry Analysis Report – Public Offering Funds

Mazars has released the "Asset Management Industry Analysis Report – Public Offering Funds". This report explores various facets of the development history and future trends of China's public fund sector, including an overview of the industry, different types of public fund products, and an in-depth analysis of the fund management companies. Additionally, it offers practical advice and strategies for navigating these areas effectively.

Chinese financial institutions embarked on asset management ventures in the late 1990s. Despite their late entry, they swiftly gained momentum. The journey involved stages of initial exploration, accelerated growth, transformation, and high-quality development. Over three decades, a competitive landscape has evolved, comprising banks, insurance firms, securities corporations, public and private fund management companies, trust companies and futures companies.

The asset management industry has experienced consistent growth since the "New Asset Management Regulations" were implemented in 2018. It is projected that by the end of 2023, the industry could surpass 120 trillion yuan. This includes public funds at 27.60 trillion yuan, bank wealth management products at 26.80 trillion yuan, private equity fund products at 20.58 trillion yuan and non-public asset management products at 18.98 trillion yuan. Additionally, trust plans are projected at approximately 17 trillion yuan, and insurance company asset management products are anticipated to be around 9 trillion yuan.

 Since 1998, China's public fund industry has experienced significant growth, offering a diverse array of investment products to investors. In 2023, the industry witnessed a series of pivotal events, signaling both rapid development and substantial transformation.

Looking forward, we suggest the fund management companies should seize this moment to stay responsive to market dynamics, adapt to market shifts, and enhance product competitiveness. It may be beneficial to actively explore new products like ETFs, QDIIs, and REITs. Additionally, fund management companies should consider diversifying their business strategies, expanding product offerings, and catering to the diverse investment needs of clients. On this basis, the public fund industry should be prepared to adapt to policy changes, drive for fee structure reforms, increase investor satisfaction, and promote high-quality industry development.

Mazars Financial Services consists of an integrated team offering high-quality services in Audit, Accounting & Outsourcing, and Tax services to clients in the asset management, banking, insurance, and real estate sectors. With a deep understanding of the unique challenges and attributes of each sector, we offer tailored and insightful solutions. If you have any related business needs, please feel free to contact Mazars Financial Services.