Future Finance
Wall Street Struggles to Keep Up in China Mutual Fund Boom
- Locally-based firms still dominate $3.4 trillion industry
- Local funds raised twice as much as foreign firms this year
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From BlackRock Inc. to Vanguard Group, global asset managers have been dazzled by the promised riches of China’s $3.4 trillion mutual fund industry. However, they’re now learning just how fierce the local competition will be.
Funds backed by international firms raised $470 billion from retail investors in the first eight months of the year, less than half the $967 billion haul of their 100-plus Chinese rivals, according to data compiled by Morningstar and Bloomberg. Of the top 10 biggest funds raised this year, only two were backed by foreign companies.