The Rise of Global Allocation Demand from China

InvesTAO China Alpha Webinar Series
This document is for institutional investors only
HostCity of London
PartnerInvesTAO
Panellist(s)CDAM, Industrial and Commercial Bank of China, Ninety One, SWS MU Fund Management
Date7 September 2021

Summary

China’s Qualified Domestic Institutional Investor (“QDII”) scheme, supervised under the State Administration of Foreign Exchange (“SAFE”), is an outbound investment programme for the selected Chinese financial institutions to invest overseas via a controlled quota. In recent years, the Chinese regulators have been expanding the QDII quota to meet investor demand as well as address the significant imbalance between QFII (Chinese inbound investment program) and QDII. The former measures the level of global investments into China, the latter is a testament to China’s outbound investment size.
 
In 2021, China’s mutual fund industry has grown to $3.2 trillion in net assets. However, China’s outbound investment, made available through the QDII quota scheme, remains less than $130 billion. There is growing demand from Chinese asset owners and managers seeking quality investment opportunities from abroad.
 
The UK is among the world’s oldest capital markets and has rich experience in managing assets for global investors. The City of London is also a hub for a wide range of international investment products and would like to provide all investors with an event aimed at exploring China’s QDII expansion and what it means for the UK asset managers.

Panellists' Bio

Speaker
Faye Ye
Head of China and India, Innovation & Growth, City of London Corporation

Faye heads up the City of London Corporation’s engagement on China and India. She and her team (in London, Beijing, Shanghai & Mumbai) work to secure London’s future as the most global financial centre by building opportunities for trade and investment with China and India, two of the largest emerging markets, promoting policy and regulatory dialogues to facilitate market access, and to create platforms for China/India-focussed business growth in London.
 
Prior to her current role at the City Corporation, Faye was a policy and business engagement manager at HSBC Group specialising in Chinese financial policies and government relations, and also worked as the coordinator for UK Parliament’s All Party Parliamentary China Group.
 
Faye has extensive experience in public affairs, government relations and business development. She has a Master’s degree in information technology, and also studied international relations and diplomacy at SOAS. Faye speaks Chinese (Mandarin) and English.

Speaker / Moderator
Hillary Su
Head of UK, InvesTAO

Hillary Su joined InvesTAO in 2019, currently responsible for the fund distribution and institutional client relation across EMEA with a focus on the UK. Prior to InvesTAO, she was equities sales in Maybank Kim Eng, Everbright Sun Hung Kai and Haitong Securities in London, where she was also in charge of the company’s corporate access to Chinese listed companies. Before that, she worked for and KPMG in London, advising multinational corporates on market-entry risks in emerging countries.

Ms Su holds an MSc. from the London School of Economics and a BA with Honors from Ohio Wesleyan University.

Speaker
Adam Chamberlain
Founder and CEO, CDAM

Adam Chamberlain is the founder and CEO of CDAM, an independent, privately owned investment management firm based in London. Adam founded CDAM with former JP Morgan colleague Scott Davies, in April 2006. Adam joined JP Morgan in 1989 after gaining First Class Honours in Banking and International Finance from City University Business School. Over the next 13 years he worked in a variety of roles for JP Morgan both in London and New York. In 2002 he joined Barclays Capital, spending three years in New York, before returning with his family to London to launch CDAM. Since 2006, CDAM has applied a long-term, value-orientated and counter-cyclical approach to investing in developed-market equities on behalf of an institutional client base.

Speaker
Yue Chang
Deputy Head of Global Service Division, Custody Service Department, ICBC

Ms Chang Yue joined ICBC Beijing Branch in 2003, engaging in Financial Institution Business. She worked in Custody Service department ICBC head office in 2005, performing QFII custody marketing and client service. She was appointed as Deputy head of Global service division since August 2018 in charge of custody business for all kinds of cross-border investment eg QFII, RQFII, CIBM Direct, QDII, WFOE PFM and QDLP&QFLP, etc and DR business.

She got her bachelor and master’s degree from Nankai University in 2003.

Speaker
Philip Saunders
Co-Head of Global Multi-Asset Growth, NinetyOne

Philip is Co-Head of Multi-Asset Growth at Ninety One. He is also the co-portfolio manager for the Global Strategic Managed and Risk Managed strategies and has macro focussed research responsibilities.

He began his investment career in 1981 as an analyst at Guinness Mahon & Co Limited, assuming management responsibility for the company’s managed currency funds in 1984. In 1987, he became a founding director of Guinness Flight Global Asset Management, which was later acquired by Ninety One in 1998, and led its successful Global Fixed Income team. In 2000 he joined the Multi-Asset team, becoming Head in 2004.

Philip graduated from Cambridge University with an MA in History in 1980.

Speaker
Xiaosheng Chen
Chairman, SWSMU Fund Management

Xiaosheng Chen is the Chairman of SWSMU Fund Management Co Ltd. Prior to his experience as Assistant President in Shenwan Hongyuan Securities from 2018 to 2021, he was the General Manager of SWS Research from 2004 to 2018.

Xiaosheng graduated from Shanghai Jiao Tong University with an MA in 1994.