Our global industry report has been published every year since 2015. It came about because at Funds Europe, we had expanded our coverage in the preceding years into the Middle East and North Africa, and into Asia. Within this annual report, we usually discuss fund flows and investor appetites in Europe and beyond, while highlighting other salient issues going on in the funds industry globally.
The Evergrande debacle is one event that could impact fund flows in and around China. For many asset managers, it could be beneficial.
China’s real estate market has long been a source of worry, owing to the amount of debt involved. Evergrande is the large Chinese real estate company that has defaulted on its debt. There are concerns about systemic risk, but concerns are largely contained.
Our article makes the point that the episode “may alter historically conservative Chinese attitudes to investing in property as opposed to equities, which could benefit foreign managers trying to sell funds in the country”. BlackRock is one firm with a successful track record there. In September 2021, it raised $1 billion for an equity mutual fund in China that invests in areas such as clean energy and the digital economy. Perhaps Evergrande’s troubles will help other firms that follow.
Nick Fitzpatrick,Group Editor, Funds Europe
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