Rise in assets predicted for investing

Investment

15 March 2007

China's asset management market is set to grow strongly over the next decade as billions of dollars in savings are invested and regulators allow access to a wider range of products, according to a consultancy group. McKinsey predicted that the mainland market would grow 25% annually to US$1.4 trillion by 2016 from US$156 billion now, the South China Morning Post reported. The industry has grown 37% from US$32 billion in 2001. Assets under management make up only 8% of gross domestic product in the mainland, against 24% in Taiwan, 28% in South Korea and up to 214% in the United States. McKinsey also said improved regulatory structures, greater foreign involvement and more companies with dual listings in Shanghai, Hong Kong and New York will create a more favorable environment for the market.

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