China has scrapped the quota of its two leading inbound investment programmes, but the move appears unlikely to give its onshore capital markets a shot in the arm.
The trade-off between the needs of today and the desires of tomorrow is challenging the retirement savings systems in Asia as Covid-19 forces early withdrawals.
With full ownership now on the table and various alternatives also open, foreign fund groups in China are weighing how to expand into a fast-changing market with lots of potential.
Beijing will likely require asset owners play a bigger role in ESG investing as part of broader sustainability plans when it announces its five-year plan later this year, according to KPMG.
The head of risk for the de-facto central bank's investment portfolio explains why it is implementing ESG principles into its investing practices.
The city's regulator and central bank must introduce guidance and rules more aggressively if they want to show that Hong Kong is committed to green finance, say industry participants.
By enlarging their investment scopes, the regulator is also paving the way for them to expand their businesses in China.