A lack of available talent is holding back the creation of new private funds in China. Only around half a dozen global asset management companies have made progress with establishing funds, despite more than 30 having been granted licences by Chinese authorities in the past two years. The government has also failed to create an environment that encourages investors from outside China to invest in China, said Mr Li, who heads the investment advisory firm Zhongnan International Investment Group. Salaries in China are also not able to compete with those of equivalent Mandarin-speaking positions in other financial centres, further exacerbating the shortage of skilled professionals. China's private fund management market is worth $1.5tn.
A lack of available talent is holding back the creation of new private funds in China. Only around half a dozen global asset management companies have made progress with establishing funds, despite more than 30 having been granted licences by Chinese authorities in the past two years. Companies are restricted from bringing in overseas executives by requirements for them to pass written tests in Mandarin. Salaries in China are also not able to compete with those of equivalent Mandarin-speaking positions in other financial centres, further exacerbating the shortage of skilled professionals. China's private fund management market is worth $1.5tn.