China Asset Management Company, the second-largest fund manager in China, intends to introduce funds in the U.S. and Brazil this year, as reported on January 16 by its CEO Li Yimei. The firm, mostly state-owned, aims to partner with a U.S. entity to offer funds for American retail investors, while also pursuing Beijing's endorsement for a cross-listed exchange-traded fund (ETF) in Brazil. These ventures represent pioneering initiatives in both countries.
Li's remark, If the mountain will not come to us, then we will go to the mountain, underscores the company's proactive strategy. Despite potential challenges in U.S.-China relations under the incoming leadership, Li anticipates a resurgence of interest in Chinese assets, fueled by Beijing's economic support measures.
Acknowledging potential skepticism from U.S. investors towards Chinese offerings, Li highlights diverse perspectives among investors, indicating an opportunity to meet varied demands. While U.S. investors face constraints on Chinese investments, Li remains optimistic about attracting capital from the Middle East, Latin America, and Southeast Asia. Remarkably, ChinaAMC garnered increased investments from global and mainland clients through its Hong Kong arm last year, surpassing HK$100 billion in assets under management.
In a landmark move, Qatar's wealth fund acquired a 10% stake in ChinaAMC last year, marking the first-ever Middle Eastern investment in a Chinese entity. Further illustrating international expansion, ChinaAMC partnered with Oman's Jabal Asset Management to introduce a China equity fund in Oman, a unique offering for Chinese managers in the country.
ChinaAMC is also exploring a potential ETF cross-listing collaboration with Brazil, building on President Xi Jinping's outreach. Domestically, Chinese asset managers face margin pressures and increased institutional investments, with entities such as ChinaAMC benefiting from notably heightened flows.
Li emphasized the positive sentiment injected by state-backed funds during market downturns, illustrating the government's enduring confidence.