China will provide the “single largest growth opportunity” for global investment managers, with the country’s mutual fund assets forecast to multiply fivefold to reach $7.5tn (Rmb47tn) by 2025.
This expansion could create a fee pool for running mutual funds worth $42bn a year, a lucrative new stream of profits for international managers with an established Asian presence, according to UBS, the Swiss bank.
“The opportunity is substantial but it all depends on the progression of reform and deregulation,” said Kelvin Chu, an analyst with UBS.
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