China has leapfrogged the UK and France to become the world’s fifth-largest fund domicile, as the breakneck growth of its fledgling investment sector continues despite the coronavirus-induced recession, reported the Financial Times.
Chinese funds increased their share of the global investment market significantly in the first three months of 2020, propelling the country from tenth to fifth position in a quarterly fund domicile ranking compiled by the European Fund and Asset Management Association and the US’s Investment Company Institute.
The country pulled ahead of established asset management markets France, the UK, Japan and Australia to seize 4.1% of worldwide fund assets. At the end of last year, China accounted for 3.2% of global assets, compared with the UK’s 3.3% and France’s 3.7%.
The US is the world’s largest fund domicile, controlling 47.9% of the market, followed by Luxembourg with 8.8%, Ireland with 5.8%, and Germany with 4.6%. The data is for open-ended, regulated funds, including money market funds, globally.