Tianhong Asset Management’s huge, Alipay-linked money market fund helped drive China's sizzling AUM increase, though regulatory pressures may stifle 2018 growth.
Lauren Oakes of Goldman Sachs Asset Management spoke to AsianInvestor about the top-line findings from this year's Asia-Pacific liquidity survey.
The Chinese firm posted faster AUM growth than any other fund house in Asia last year, with a fourfold increase overall and a 13-fold rise in its flagship money market fund. It has several launches planned.
Chinese mutual fund assets nearly doubled last year to a record high of Rmb8.4 trillion ($1.3 trillion), driven largely by money-market products, which analysts say have stabilised the industry.
The meteoric growth of money-market funds in China has slowed and last week's rate cut could dampen that further. Nevertheless observers expect MMFs to remain dominant.
The Chinese manager is readying an equity fund, but does not plan to bring its Yu’ebao money-market product to Hong Kong. Its vice-general president also spoke about online distribution challenges.