UBS, one of the first banks to establish itself in China, is completing its range of products in a bid to become even more entrenched in the fast-growing financial market.
UBS recently was the first non-Chinese bank to receive the license to sell funds in China, a fact reported by finews.asia in July.
Switzerland’s biggest bank will move quickly to make the best use of the advantage it has over rivals in getting better access to the market of a billion sparsely banked consumers. It plans to launch its first fund for private investors by the end of the year, «Reuters» reported following a press briefing in China.
Getting a Slice of the Cake
The UBS fund will invest the money in shares and bonds in China. The bank also mulls the launch of funds aimed at alternative investments, including real estate, according to the report.
The private funds business is the last piece of the puzzle that UBS is putting together to tap into the gigantic market, according to Aries Tung, head of strategy for China at UBS asset management: «We help foreigners invest in China, and also help Chinese invest overseas. Now, we will help Chinese invest locally. Our rivals may not have such a complete product line.»
A Gigantic Market for Grabs
The Chinese private fund market currently is worth some $1.54 trillion and UBS wants to take a slice of a business that is growing at breath-taking speed. René Buehlmann, head of asset management in Asia at UBS, expects the market to expand to more than $10 trillion by 2021.
