The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
This comes at a time when the A-share market is in free-fall. The Shanghai Composite Index fell nearly 4% last week, the worst weekly finish in 11 years, to close at a year-low of 3,094 points. The index has declined 41% year-to-date, after doubling in value in 2007.
But the real impetus for CBRC's actions, according to fund industry executives, is the loss incurred by a Minsheng Bank QDII product, structured by UBS using an underlying fund managed by Baring Asset Management. The product had the misfortune of being launched on October 31 last year, the day after Hong KongÆs Hang Seng Index reached what turned out to be its peak.
The CBRCÆs memo expresses the regulatorÆs concern that banks are creating investment products with inappropriate levels of risk. It says some banksÆ manner of calculating yields for their wealth-management portfolios donÆt add up, going as far as to accuse them of a ôcomplete lackö of risk management in identifying and quantifying product risk.
The industry, says the memo, has failed to understand and assess products in its negotiation with external product providers. The CBRC says banks had failed to assess track record, investment market and risk control capability of these external fund-management companies. Most importantly, fiduciary duties and risk clauses between product procurer and supplier have gone ignored.
The CBRC highlighted 14 areas where banks are failing as distributors, including violations of the Regulation on Personal Wealth Management Business, as well as areas related to customer evaluation, product advice, disclosure, the management of salespeople and customer communication.
No banks have been singled out for punishment but the sector has been warned to clean up its act, adding that the CBRC will conduct secret investigations of branch sales of investment products.
The full story, including the impact this will have on QDII business, will appear in the May edition of AsianInvestor magazine.
Sunsuper and QSuper appoints CIO for combined entity; State Street appoints heads of HK and Taiwan; Nothern Trust rebuilds Apac team; Manulife IM names emerging markets fixed income CIO; RBC Wealth Management hires four into HK; Lombard Odier hires two senior equity managers; Allianz Global Investors appoints Asia hand as equity CIO; and more.
Investors from China and the US are expected to continue buying assets in each other’s markets despite the blacklist of Chinese firms with military and surveillance ties.
Stronger government actions are needed to meet the Paris Agreement goal of limiting global temperature rise to 1.5 degrees, investors such as Hesta and CDPQ signed in a statement.
AsianInvestor explains why we chose the winners of the second half of our 2021 fund manager winners, by major local markets.