FleishmanHillard reveals attractors for Chinese investors

A report by consultancy FleishmanHillard has revealed the qualities which are increasingly attractive to mainland Chinese investors seeking asset management services. The report, “The Future of Asset Management in China” is built upon analysis of a survey conducted with Chinese investors. It also provides an industry overview.

"By examining mainland investor behavior together with liberalization trends in China, we've been able to derive insights on the future of asset management in China. These insights can help industry players understand investor expectations and plan their communications programs more effectively," Patrick Yu, Asia-Pacific lead for FleishmanHillard's financial and professional services practice, said.

Brand credibility and investment performance are key to Chinese investors, with 69% of respondents stating that they preferred wholly foreign-owned enterprises (WFOE) and joint ventures to local asset managers, as global brands seem more trustworthy. The performance of WFOE’s private funds also play a great role in attraction, with 93% of investors responding that strategy is most important, and 87% looking to private fund performance.

While not in the top spot – that goes to communication transparency and risk management – environmental, social, and governance (ESG) expertise is increasingly important, with 52% of respondents stating that expertise in the area is “very important,” and 84% stating that it is “very or somewhat important.” ESG’s growing important is an opportunity for asset management firms, as its potential in attracting investors is all but certain.

Chinese investors also look to multichannel communications when deciding on fund management, with independent financial advisors, financial media, social media, and websites all playing similarly important roles. Firms would do well to place priority on digital channels for sales and marketing strategies in China, while IFA popularity shows that face-to-face relationships and trust are still key in making investment decisions.

"Asset management is just one component of China's reform agenda. For a world where the fluidity of fund flows enables Chinese and global investors alike to create borderless investment strategies, all parties need to work together,” Yu said. “For that to happen and for everyone to benefit, the need for effective communications is essential."

FleishmanHillard is based in St. Louis, Missouri. Following its 1997 acquisition, it became part of the Omnicom Group. The firm focuses on public relations, reputation management, public affairs, brand marketing, digital strategy, social engagement, and content strategy.