Shanghai climbs world's top asset management centre ranking
September 1, 2022. Shanghai – Shanghai, the financial hub of China, has climbed up the ranking of the world’s top asset management centres two places to number six, according to a report released at the 2022 CEIBS Asset Management Forum recently.
Compiled by CEIBS Lujiazui International Institute of Finance (CLIIF), the 2022 Global Asset Management Center Evaluation Index evaluates global asset management centres via 59 quantitative indicators.
New York tops the list with 97.2 points, followed closely by London, Boston, Singapore and Hong Kong. Paris, Toronto, and Los Angeles also made the top ten.
In terms of the specific segments, European capital management hubs such as Frankfurt, Luxembourg and Dublin are home to ESG and alternative asset business, while Singapore overtook Hong Kong this year with a slight lead in funding sources, capital management institutions and open-ended funds.
Shanghai’s rising position in the ranking not only reflects the city’s solid foundation as an international financial centre, but also speaks for the large volume and the competitive edge of Shanghai’s financial market, according to the report.
It suggested that the global asset management center in 2022 features three characteristics: sluggish growth of global asset management scale, net capital outflows from Europe to US Treasuries, and pandemic disruption of the Asian financial market. The report also took an in-depth look into ESG asset management products and ESG market opportunities in Shanghai.
Speaking at an event to mark the ranking, CEIBS President Wang Hong stated that Shanghai is mapping out a series of plans to upgrade itself into an international financial centre, including promoting openness and innovation, speeding up the construction of international financial asset trading platforms, implementing pioneering financial measures, and most importantly, making Shanghai a global asset management centre.
Also speaking during the event, Vice President of the Shanghai Head Office of the People's Bank of China Jin Penghui noted that the index, which reflects the development trends of the global asset management industry, provides important reference for market participants and policy makers. It also clarifies the direction and path of building Shanghai into a global asset management centre.
“Building a global asset management centre is the prerequisite for Shanghai on its way to being an international financial centre,” he said.
As the financial hub of Shanghai, Lujiazui is now home to 114 foreign capital management companies from 13 countries and regions.
CEIBS Professor of Finance and Accounting and Executive Deputy Director of CLIIF Zhao Xinge suggested that Shanghai has excelled this year in the growth rates of underlying asset and open-ended fund sectors, while maintaining its strengths in gathering capital sources and talent.
In particular, he added, that China's economic transformation and the financial reform and opening up offer great opportunities for asset management business in Shanghai.
Former Chairman of ICBC and President of CLIIF Jiang Jianqing pointed out that the gap between Shanghai and New York and London lies in the supply and the business side, and is exacerbated by a lack of Chinese presence among the world’s top 50 asset management companies.
“Despite a great growth prospect in China’s asset management industry, there’s still much room for development in terms of legislation, policy and regulation”, he added.
A panel discussion on the international asset management industry was also held during the event.