China’s third-largest insurer will target long-term strategic investments into overseas insurers after its $1.81 billion GDR listing in London, says its group chief investment officer.
We asked two investment specialists and one custody services expert what the outlook for the upcoming Shanghai-London scheme is, given the uncertainty surrounding Brexit.
The Chinese firm is postponing its UK plans due to Brexit-related uncertainty and lower foreign demand for RMB assets. Still, it expects mandates from European investors to start flowing soon.
Retail investors may be fleeing UK real estate funds, but institutions are staying put, says Kiran Patel, CIO of Savills Investment Management. However, he does expect a drop in returns.
But some feel Europe’s financial services industry may become less concentrated in the UK capital as a result of Brexit, with asset managers, for instance, potentially moving businesses elsewhere.
Investment industry participants flag concerns about short-term market moves and long-term business complications that would result if Britain votes to exit Europe this coming Thursday.