“Amundi is well positioned to capture the wealth of opportunities China will offer.” Xiaofeng Zhong
Chief Executive Officer of Amundi North Asia
“What primarily characterizes our regional market – which comprises Hong Kong, Taiwan and Mainland China – is fierce competition,” says Xiaofeng Zhong. “All major players are present, and have been for years, investors are used to high-performing products and solutions, and the war for talent is raging.” In such a complex and demanding environment, the Group performed remarkably well in 2018, both in Institutional and Retail activities. “This is the result of our patient and determined investment in our brand, our products, and our people,” Xiaofeng Zhong explains. “In a predominantly dollar-oriented region, we were able to innovate and strengthen our teams.”
The global market capitalization in China as of September 2018. China is second behind the US, and ahead of Japan and both Euronext and the LSE.
Gaining traction in Hong Kong and Taiwan
In Hong Kong, where the retail market is dominated by large Anglo-Saxon asset managers and shows a natural bias towards US products, Amundi has secured access to all major distribution channels and gained market shares. In Taiwan, where offshore funds still account for 60% of the overall market, Amundi ranks seventh on this particular segment, with over 7 billion dollars in assets under management. “We aim to enter the top five in 2020,” says Xiaofeng Zhong. “With the addition of Pioneer Investments’ expertise in the US and emerging markets, we should manage to cross the 10 billion dollars threshold.” The recent and successful integration of Mirae now enables Amundi to grow at a faster pace. “Our objective for 2019 is to maintain our level of performance, with special emphasis on revenue generation and profitability. We will keep fostering innovation and strive to increase brand awareness and recognition.”
Getting ready for the Chinese Big Bang!
In the asset management industry, the next game changer is the upcoming significant opening of the Chinese market. “China is already the world’s second largest market in terms of bonds and equities,” Xiaofeng Zhong explains. In the coming years, its full potential will be unleashed, with international asset managers being allowed to sell both overseas and local products to Institutional and Retail clients and more and more Chinese investors allocating their assets on a global basis. “We need to be prepared,” Xiaofeng Zhong says. “The good news is we are already very well positioned, through our JVs, offshore offers and mutual recognition of funds schemes. All of that makes us one of the few players that should be able to best capture the wealth of opportunities China will offer.”
“Our performance in North Asia is the result of our patient and determined investment in our brand, our products, and our people.” Xiaofeng Zhong