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.
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 per cent of worldwide fund assets. At the end of last year, China accounted for 3.2 per cent of global assets, compared with the UK’s 3.3 per cent and France’s 3.7 per cent.