China’s asset management industry tops RMB6 trillion in AUM

07 May 2014   Category: News, Asia, China, Global   By Hui Ching-hoo

China’s asset management industry topped the 6 trillion RMB (US$958.4 billion) mark in total AUM to hit 6.11 trillion RMB as of the end of March, according to figures from the Asset Management Association of China (AMAC).

Of this amount, mutual funds and private equity accounted for 3.47 trillion RMB and 1.26 trillion RMB, respectively. Assets overseen by domestic managers’ segregated account subsidiaries made up the remaining 1.38 trillion RMB.

The total AUM figure represented growth of 70% for an industry that only amounted to around 3.62 trillion RMB in late 2012. AMAC attributed the increase to a boom in money market funds (MMFs) and private equities, as well as the emergence of segregated account affiliates.

The pickup comes after the China Securities Regulatory Commission (CSRC) relaxed restrictions on domestic managers setting up offshoots to manage segregated accounts, which allow them to diversify their business models. More than half of the country’s 82 registered asset managers have so far established affiliates to manage these segregated accounts.

The MMF market has taken off since Mainland ecommerce giant Alibaba Group teamed up with Tianhong Asset Management to launch China’s first online MMF, the Tianhong Zenglibao Monetary Fund, in June 2013 via internet investment platform Yu’ebao.

Since then, similar types of MMFs have mushroomed in China. Accumulated AUM for these online MMFs has so far exceeded 1 trillion RMB.