Developing institutional investors in People's Republic of China
This note describes the existing structure and activities of institutional investors in China. It... more This note describes the existing structure and activities of institutional investors in China. It identifies key principles for building a solid institutional investor base going forward. The nation's institutional investors are largely comprised of life insurance companies and pension- and investment- fund managers. In addition, trust and investment companies (TICs) and securities companies offer their clients discretionary asset management services. Overall, China's ratio of institutionally- managed assets is small compared to developed markets, representing around 10 percent of GDP. According to some estimates, unregulated privately placed funds may be roughly of equal size. The life insurance industry is the largest repository of savings outside banking, and is enjoying strong growth in premium income. At present, life insurance companies are limited mainly to investing in government bonds and bank deposits, but may obtain CIRC permission to invest in other instruments, ...
This report describes the existing structure and activities of institutional investors in China. ... more This report describes the existing structure and activities of institutional investors in China. It identifies key principles for building a solid institutional investor base going forward. The nation's institutional investors are largely comprised of life insurance companies and pension and investment fund managers. In addition, trust and investment companies (TICS) and securities companies offer their clients discretionary asset management services. Overall, China's ratio of institutionally-managed assets is small compared to developed markets, representing around 11 percent of GDP. China has the potential to build one of the largest institutional investor bases worldwide. Promoting the emergence of competent institutional investors is an important complement to an overall capital markets development strategy. Since institutional investors tend to have longer-term investment time horizons, they provide an ideal source of funds for investment in longer-term government and i...
During the finalization of the Government Bond Market Reform Report, the PRC Ministry of Finance ... more During the finalization of the Government Bond Market Reform Report, the PRC Ministry of Finance requested further work on those parts concerning the market's demand-side, particularly those of institutional investors─ pension systems, insurance companies and mutual funds. In response, the note focuses on the following: comprehensive assessment of the existing state of institutional investors; institutional capacity and the regulatory environment; identification of key constraints; and suggestions on broad principles.
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