China Removes Limits for EU Investors
Yesterday we enthused about the new opportunities an FDI-hungry China has made available to EU businesses.
But we saved the sweetest plum for European investors.
Anyone not on the Fed’s PR team, or a proponent of Modern Monetary Theory (“printer go brrrrrr no problem”), has very justifiable concerns about an overheated US equities market, paired with its gelid economy. In Europe, the investment environment phrase-of-the-decade is “negative interest rates”.
Meanwhile, China is fully committed to modernizing its financial and financial services sector. To wit, EU investors can forget JV requirements or equity caps for banking, securities trading, and asset management.
Remember, we’re talking about a country whose mutual fund market alone is expected to triple to $8.75 trillion in the next decade.
“Yes, setting up a financial services firm in China has its risks and challenges,” says Jimmie Jeremejev. “However, initiatives such as QFLP programs, the Qingdao Wealth Management Zone, and now this trade agreement, indicate that the risk-reward profile is improving significantly. And not just for giants like Vanguard. We’re very excited about prospects for smaller asset managers.”
“Our bread-and-butter is setting up infrastructure so that western organizations can take a safe, legally profitable road into China markets,” says Edward Lehman. “The solutions are there for long-term growth.”