Mutual fund assets invested with Chinese fund and wealth management companies grew 36% year-over-year in 2020 to reach 2.44 trillion euros ($ 3 trillion). ).
According to a study conducted jointly by Luxembourg for Finance – the national agency for the development of financial centers – and PwC Luxembourg, assets have also grown at a compound annual growth rate of 23.9% over the past decade, thanks to constant investments by investment funds domiciled in the European Union. .
European investments in Chinese securities managed by Chinese companies grew at a compound annual growth rate of 10.4% over the 20 years ended June, to reach € 298.2 billion, according to the study.
Allocations of investment funds domiciled in Europe increased as a proportion of all investments in China to 56.2% at the end of 2020, compared to 33.1% at the end of 2017.
Investments by US investment funds decreased as a percentage of all investments in China during the same period to 14% at the end of 2020, from 15.7% at the end of 2017. Investments by funds domiciled in Hong Kong decreased in percentage to settle at 11.8. % of 23.4%, while investments of UK domiciled funds decreased in percentage to 0.9% from 2.2% during the same period. Investments of funds based in other markets decreased in percentage to 17.1% from 25.5% over the period.
Chinese investments in European assets also increased over the 20 years ended June at a compound annual growth rate of 9%, to reach € 267.9 billion, made up of around 49% European equities and the rest of obligations.
“Recent regulatory developments in China and the strong interest shown by global players to access the Chinese market and vice versa strongly suggest that the financial sector represents a real opportunity to foster a lucrative and sustainable financial relationship,” said Dariush Yazdani, manager of the market. leader of the research center for asset and wealth management at PwC Luxembourg, in a press release on Monday.