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Amundi, Europe’s largest money manager, targets US$600 billion in Asian assets under management by tapping Wealth Management Connect, ESG opportunities
- The money manager aims to boost its Asian assets under management by 70 per cent in the next four years, says its Greater China boss
- China’s push to promote environmental, social and governance (ESG) ‘have given confidence to global asset managers to invest in the country’
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Europe’s largest money manager is aiming to boost its Asian assets under management by 70 per cent to €500 billion (US$591 billion) by 2025, tapping opportunities arising from the forthcoming Wealth Management Connect scheme and China’s drive to achieve carbon neutrality by 2060.
“China’s market is so huge that it is impossible for any investment manager to miss it. The country’s opening up policies to attract foreign investors and its policies to promote environmental, social and governance (ESG) have given confidence to global asset managers to invest in the country,” said Zhong Xiaofeng, chairman for Greater China of Amundi Asset Management.
The Covid-19 pandemic has also encouraged the Paris-based company to invest more in China.
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“The pandemic has led asset management companies globally to further diversify their businesses into more markets because they cannot rely on developed markets which have much slower growth than mainland China, which has seen a quicker economic recovery due to its better control of the pandemic,” said Zhong in an interview.
Amundi, which had €1.76 trillion of assets under management as of March, is joining a wave of fund houses expanding in mainland China and Hong Kong. They are eyeing the launch of the new Wealth Management Connect scheme and China’s moves to improve ESG, according to Sally Wong, chief executive of Hong Kong Investment Funds Association, the industry body of the fund industry in Hong Kong.
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Wealth Management Connect is the first cross-border investment scheme in the Greater Bay Area. It will allow Hong Kong and Macau residents to buy mainland investment products sold by banks in the bay area, while residents of the nine Guangdong cities will also be allowed to buy investment products sold by banks in Hong Kong and Macau.
“Wealth Management Connect scheme tops the agenda of many fund houses. This scheme is of huge strategic significance and is poised to be a game changer,” Wong said. “Integration of ESG into the risk and investment management has mainstreamed.”
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