The $145 Trillion Future of Investing Is Heading to Asia

Surging wealth throughout the developing world will reshape asset management.
  • Chinese assets under management to rise at break-neck pace
  • This story is part of a series on the future of investing

AXA's Tinker Says in Asia, it's All About China

Every other day, a new billionaire is minted in Asia. That growing wealth has sparked a shift in the world of investing, as ascendant emerging markets outpace the long-dominant U.S. and Europe.

Global assets under management are estimated to almost double to $145.4 trillion by 2025, with the fastest growth in the Asia-Pacific, PricewaterhouseCoopers data shows. The forecast for a 145 percent surge in the region is more than twice the expected increases in North America and Europe.

All eyes are on now China after the government said in November that it would open the country’s asset management industry to foreigners. They will chase assets that are expected to jump more than five-fold by 2030, according to estimates by Casey Quirk by Deloitte.

Illustration: Kevin Hong

Chinese pensions, long squirreled away in bank deposits and bonds, have diversified into alternative investments recently as the population ages and retires, according to Miranda Carr, a China macro strategist at Haitong Securities UK.

“You’ve got pension assets growing, individuals investing in more traditional funds and foreign investors trying to get more middle-class and high-net-worth investors in China,” Carr said in an interview.

— With assistance by Chloe Whiteaker

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