China's Fund Management Industry Grows 40% in 2009

The Chinese fund management industry grew by almost 40% last year, with total assets under management rising to almost $400 billion by the end of 2009.

According to a report by Shanghai-based Z-Ben Advisors, the industry's AUM rose to $392 billion, a 37.9% rise compared to 2008. The rise was almost exclusively due to growth in underlying assets, while new equity-sector launches mitigated a year-long exodus from other assets, Z-Ben said. In particular, the year was marked by a flight from money market funds, and to a lesser but significant extent, fixed-income funds.

Z-Ben said that overall, it was a year of consolidation for China after the boom and bust of 2007-2008. That consolidation for the most part favored the industry's largest firms, with many more mid-and small-tier firms losing market share.

The top five firms by market share at the end of 2009 were China AMC, E-Fund, Bosera, Harvest, and Southern. Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio