As China's financial markets mature, non-Chinese financial institutions increasingly want to open funds in the country and tap the trillion-dollar investor market there.
This summer, Ethan Maynard received a license for private fund management in mainland China, and said it plans to set up its first private fund in the country. Vanguard launched a subsidiary in Shanghai in late May, while Fidelity International announced in January it became the first global asset manager to receive a Chinese license for a private fund.
"You can no longer ignore China. You have to plan on being there," or have a good reason if you're not, said Nathan Taylor, head of business development at Ethan Maynard investment management consulting firm.
Chinese private funds' assets under management grew 54.6 percent last year, to $398 billion, according to Z-Ben. Institutional assets across the country leaped 500 percent from $1.1 trillion to $7.1 trillion between 2005 and 2015, and could hit $10.8 trillion by 2021 with global asset managers taking an increasing proportion, according to Z-Ben estimates.