China's assets management business is expected to reach 1.4 trillion U.S.
dollars in ten years, according to a recent report by international consultants
McKinsey & Company.
China's current assets management market is
worth 156 billion U.S. dollars and is expected to grow at an annual rate of 25
percent over the next decade, the report predicts.
Individuals will tend
to invest in financial products with higher profit margins such as mutual funds
instead of depositing their money in the bank, the report said.
Investment reforms are creating a favorable environment and China's
capital market is undergoing quick and continuous development, it said.
These three factors contribute to the boom of China's assets management
business, McKinsey said while pointing out that the market may fluctuate in the
short term since China's capital market has not yet
matured.
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