A REPORT on the trend and capital scale of China’s fund of funds (fofs) industry was released Friday in Qianhai, aiming to provide easier financial conditions for investors, especially those who invest in cross-border financial products and private equity funds.
According to the report made by the China Fund of Funds Research Center, in 2018, five trends will appear in the industry.
It said that fundraising will be more difficult this year as the government has implemented a harsh regulation on fund management, while the fofs will have more choices in the markets — making the investors become more picky.
Strongly influenced by policies, the early-stage private equity fofs will have a larger development space as more preferential policies will be given to venture capital investment and angel investment.
Starting last year, the China Securities Regulatory Commission has carried out a series of measures to support the development of private equity funds and venture capital funds, which will help build a healthy environment for private equity fofs.
As the market-access policy has been eased, social security funds, education funds and insurance capital will become the new limited partners of fofs.
The report also pointed out that more specialized fofs will appear this year.
In 2017, there were 277 fofs in China, of which 213 were government-led fofs, managing a total capital of 1.615 trillion yuan (US$254.69 billion).