FleishmanHillard China Asset Management Report Shows Chinese Investors Placing High Emphasis on Asset Managers' ESG Credentials
The report offers insights for global asset managers assessing opportunities in
With the increasingly strong interest in ESG investment, it is notable that a combined 95% of Chinese investors think that strong ESG product offerings are "very important" or "somewhat important" for overseas asset managers operating in
Overseas asset managers working to directly offer retail onshore funds in
The survey also found:
Qualified Domestic Limited Partnership(QDLP) and private market funds from overseas asset managers continue to draw interest among Chinese investors. Ninety-five percent of investors show interest in QDLP funds, whereas 93% have purchased private market funds from overseas asset managers with Wholly Foreign-Owned Enterprise (WFOE) licenses. Better product performance and a clear investment strategy are the main reasons for investors to opt for products from overseas asset managers rather than onshore products by the local counterparts.
In the next 12 months, investors are interested in globally focused, or
China/Hong Kong SAR focused liquid asset funds. It is clear that Chinese investors are looking for more broad, global exposure to liquid assets in their portfolios over the next 12 months, followed closely by allocations closer to home in Chinaand Hong Kong SAR. It is interesting, however, to see that local investors are as interested in cryptocurrency funds as they are in fixed income funds and Exchange Traded Funds (ETF), despite recent price fluctuations.
WeChat is important for reaching Chinese investors, but independent financial advisers, bank intermediaries and financial media are also important.
Thirty-seven percent of investors use WeChat for information on funds and investment products, of which 73% used the platform to find corporate information (global and
China) – up a significant 19% from last year (54%). However, independent financial advisers or intermediaries from banks and financial media also continued to be the most important sources of information.
China'seffective response to COVID-19 has boosted Chinese investor confidence. There has been a jump in the number of those who are now confident in their personal financial situation and believe the pandemic is having no impact – 34%, up from 23% last year. The sentiment reflects China'srapid and effective response to COVID-19 and the quick return to normality in the country.
U.S.- Chinatrade tensions are leading to a more "risk off" sentiment for local Chinese investors. Compared with last year's fairly even split between investors who were more "risk on" and those who were more "risk off," the needle appears to have swung more in the direction of lower risk sentiment as tensions look set to continue for the long term. A combined 53% of respondents say they are moving more or some of their investments into lower risk options, compared with 32% who have a higher risk appetite.
FleishmanHillard's The Future of Asset Management in
FleishmanHillard specializes in public relations, reputation management, public affairs, brand marketing, digital strategy, social engagement and content strategy. FleishmanHillard was named 2020 Campaign Global PR Agency of the Year; 2019
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