Several so-called private equity funds in China really conduct risky lending or investing and pose potentially serious investment risks for asset owners, say market experts.
As part of their new advisory powers, asset managers are looking to provide a broader digital platform to compete with the disrupters.
Online sales of funds in China are disrupting the dominance of commercial bank distribution but the latest tie-up between two giant firms has limited scope, say some analysts.
Many foreign fund managers are pinning their China distribution strategies on the WFOE scheme. But the programme's limitations pose familiar problems for scaling the business.
Chinese regulators are putting up unnecessary barriers to fund managers wanting to take advantage of mutual recognition of funds between Hong Kong and the mainland, believe industry experts.
CSRC issued its first set of rules governing the performance fees that mutual funds can charge. The worry for hedge funds is that they could be extended to them.