The US firm issues a ranking of the performance, brand visibility and strength-of-fund management businesses operating in China. A host of foreign-based organisations have, despite sometimes facing challenging conditions, pushed into the Asian giant's market in recent years.

New York-listed fintech firm Broadridge has kept JP Morgan Asset Management in top position in its latest “China Power Ranking” for fund management companies operating in the Asian country. 

BlackRock comes second, with UBS Global Asset Management, Schroders and Fidelity in third, fourth and fifth place, respectively. 

Invesco, Allianz Global Investors, Morgan Stanley IM, Manulife AM and Amundi came sixth, seventh, eighth, ninth and tenth, respectively. 

“JPMorgan Asset Management maintains its number one ranking with their continued commitment to China, seen through rolling out multiple fixed-income products, as well as introducing a smart beta ETF and an ESG-leaning CSI A50 ETF,” Broadridge said in its report. “While maintaining its No. 2 rank, BlackRock experienced a decline in overall score due to brand strength challenges linked to underperforming product returns and declining fund assets.”

The report has been issued at a time when China, the world’s second-largest economy, has been hit by a government crackdown on certain sectors, such as forms of technology; other problems include debt defaults by large property development groups such as Evergrande, and worsening trade relations with the West.

“Global managers, too, are grappling with branding issues in China attributed to weak product offerings and performance,” Broadbridge said. “Nevertheless, many global firms remain committed to local expansion efforts, demonstrating confidence in China’s future growth prospects. Notably, all nine global managers owning a 100 per cent FMC [Fund Management Company] in China have secured positions in the top-20 list. They have generally enhanced their China Power Ranking and/or scores against global peers, benefiting particularly from growing local operational strength via more product launches and faster localisation.”

“While maintaining its No. 2 rank, BlackRock has experienced a decline in overall score due to brand strength challenges linked to underperforming product returns and declining fund assets. However, progress in its bank wealth management joint venture has led to strategic leadership changes, potentially expediting localisation efforts to better serve Chinese markets,” it said.

The report said that UBS Asset Management and Invesco, both lacking wholly-owned FMCs in the top-10 list, have “faced challenges in maintaining rankings and scores, primarily due to consolidation and muted local activities, respectively.”

“These change dynamics of ranks and scores have underscored the increasingly leading role of FMCs in the broader Chinese asset and wealth management industry, as seven of the top 10 have already established their 100 per cent-owned FMCs and most have launched multiple local funds,” Yoon Ng, Broadridge’s principal, APAC Asset Management Advisory, said.