We are currently living in uncertain times, however out of uncertainty often opportunity arises. The Chinese asset management industry is one such opportunity: non-channel AuM is estimated to have expanded by 10% during 2019, now worth USD 7.3 trillion.
Although the industry is still in its infancy, it is already operating on an impressive scale. In recent years, the Chinese asset management industry has grown faster than the global market and holds considerable potential for international players. According to Deloitte and EY, China is estimated to have USD 30+ trillion in addressable retail financial wealth to be managed by 2023, and in this market investible assets are growing by 13% per year, with more than half of the industry’s net new wealth predicted to come from China in the next decade.
This makes China the world’s single biggest asset management growth opportunity over the next decade.
Join Llinks to learn more about how to seize this opportunity
On 1st April 2020, China granted global asset managers the opportunity to apply for a mutual fund management licence through a fully owned subsidiary in China.
Llinks, as the leading law firm in the asset management sector, has advised a large number of these types of applications and has recently worked with global well-known financial firms. With extensive first-hand experience and expertise, Llinks is well positioned to advise on these matters.
This webinar series will focus on the following topics:
1. An understanding of the latest regulations applicable to the asset management sector, with a focus on retail funds.
2. Review of the regulatory requirements necessary for an asset management licence and a discussion of practical approaches on how to apply for such licences.
3. Learn how to establish a relationship with local partners such as custodian banks, fund administrators, fund distributors and IT vendors.
4. Guidance on financial product marketing activities in China.
Who should attend the webinar series?
We warmly welcome all interested parties to attend this webinar session. The webinars are most relevant to international asset managers and asset management firms pursuing an entry and/or expansion in China’s retail fund market or reassessing its China strategy.
Webinar Series Overview:
Session 1: Retail funds regulatory regime in China and its recent liberalisation (15th July - 9.30am BST)
China’s asset management industry has been tilting toward retail investors, which account for 60% of the country’s total AuM and the industry has posted a strong growth rate of 14% during 2019.
Rapid changes are taking place as a result of regulatory amendments, increased openness toward foreign players, and increasing wealth and innovation.
In this webinar, we will provide an introduction to the regulatory landscape, as well as the latest regulatory updates regarding the asset management sector, with a special focus on retail funds.
From a practical point of view, we will not only discuss the regulatory requirements of obtaining asset management licences but also demonstrate practical approaches on how to apply for such licences.
Session 2: How to structure your retail fund business in China? (22nd July - 9.30 am BST)
As a trusted advisor of international asset managers, Llinks’ preeminent expertise and leading market position are built on our excellent commercial awareness. Legal and regulatory advice is provided with an aim to best assist asset managers to navigate the China market in the most constructive and practical way possible.
In this webinar, we will elaborate on the following top challenges facing Asset Management firms when they structure their fund business in China:
• Reconciling national and regional requirements
• Localising a global advantage
• Pricing strategy
• Winning the talent war
• Changing regulatory landscape
We will also address pressing issues such as how to establish relationships with local partners such as custodian banks, fund administrators, fund distributors and IT vendors; as well as exploring how to market financial services and products in China.
Sandra Lu | Partner
Shanghai and Hong Kong office, Llinks Law Offices
Leader of Llinks’ asset management and securities investment funds practice
Sandra has represented over 15 global asset managers to set up JV fund management companies (FMCs) in China and has helped them to understand the Chinese regulatory environment. She has advised a large number of domestic and international financial institutions to acquire ownership interests in various Chinese FMCs.
Sandra has been highly involved in the innovative funds products in the Chinese market including providing legislative advice to the regulators and legal advice to fund houses.
With the development of the global investment capability of the Chinese FMCs, Sandra acts as the legal advisor for a majority of the qualified domestic institutional investor (QDII) Funds offered in China. She is very active in QDLP and Qualified Domestic Investment Enterprise (QDIE) initiatives, respectively launched in Shanghai and Shenzhen. QDLP and QDIE products provide an opportunity for Chinese investors to get a broader global exposure as well as the opportunity for global asset managers to set up an onshore WFOE entity to raise money directly from Chinese investors.
Sandra is often invited by regulators and various funds associations to provide legislative advice.
About Llinks Law Offices
Llinks Law Offices
(“Llinks”) is a leading PRC commercial law firm founded in 1998, and specialises in cross-border transactions with an international presence. By virtue of its professional team and seamless teamwork, Llinks has been known for its professionalism, dedication and innovation. With offices in Shanghai, Beijing, Shenzhen, Hong Kong and London, Llinks provides high-quality legal solutions to complex legal and business issues faced by its global clients and help them to achieve their business and commercial goals. The firm’s professionalism and business expertise have been consistently recognized by reputable national and international publications as a leading Chinese law firm.
Llinks, beyond resolving specific legal issues, strives to deliver trustworthy one-stop legal solutions for all businesses.
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