Hong Kong’s mandatory provident fund trustees are facing a backlash for receiving high fee incomes despite offering poor returns and could see pressure to allow withdrawals.
ETFs could gain traction among institutional investors seeking flexibility to take quick tactical positions. But the instruments face potential new regulations in Hong Kong.
China has scrapped the quota of its two leading inbound investment programmes, but the move appears unlikely to give its onshore capital markets a shot in the arm.
The island's bond ETF volumes have shot up over the past two years but they are likely to level off as new rules combine with less risk appetite among leading life insurers.
The financial group aims to expand its mainland investment team and diversify assets once it's approved to fully absorb its China life insurance joint venture, says CEO Bryce Johns.
The Chinese insurer is targeting various asset classes as it looks to diversify overseas via its new Hong Kong operation, despite market uncertainties.