Investment management has been one of the most popular sectors for multinationals investing in China of late. The country now hosts 58 fund management groups, 26 of which are joint ventures with foreign partners. Several more are waiting in the wings for approval.

The main reason for foreign interest has been the growth potential of mutual funds. The surge in the local stock market over the last two years gives some justification for that optimism. Assets under management surged from Rmb856bn at the end of last year to Rmb1,800bn as of June 30.