Chinese asset managers enjoyed a robust year for net profit growth in 2015, according to the analytics firm. But will 2016 be as strong?

Many Chinese fund management companies logged double- or even triple-digit percentage growth in profits in 2015 and six such firms logged net profits of more than RMB1.0 billion (around $150 million), a report by Cerulli Associates, the analytics firm, said.

Examining the state of the sector’s health, Cerulli said China Asset Management was the most profitable fund manager last year with RMB1.41 billion in net profit, followed by ICBC Credit Suisse Asset Management, with a net profit of RMB1.29 billion.

For the largest 20 managers in China, the average net profit margin was 30.4 per cent in 2015 while the net profit yield - which measures how much managers earn in basis points for each renminbi they manage - was approximately 28.5 basis points. Fullgoal Fund Management showed the best net profit yield last year at 56.9 basis points, the report said.

The report comes out shortly after Boston Consulting Group, as reported here, noted that in a generally difficult year for global asset management, Asia was a bright spot for asset and revenue growth in 2015.

Institutional clients continue to play a big part in growing fund management companies' revenues and profits in China, Cerulli said.

"Institutional investors are estimated to have contributed one-third of assets under management as at end-2015. We understand that they prefer one-to-one segregated accounts because such accounts are more flexible in active management and in using leverage," said Miao Hui, senior analyst at Cerulli and leader of the China research initiative.

Institutional investors also welcome "customised mutual funds", or funds launched for specific investors that meet the minimum number of subscribers, with lower leverage allowed. Still, it will be hard for fund management firms to sustain 2015's profit levels in 2016. "While institutional investors' participation in capital markets is expected to grow in 2016, FMC’s profits will be hard to maintain under current volatile market conditions," Hui added.