Zhang Yu

JeniZhang13@163.com

THE number of core investment professionals in China is projected to increase by approximately 26 percent over the next 10 years, which equates to a compound annual growth rate of 2.3 percent, according to a report released by CFA Institute.

The report was based on a market sizing study which CFA Institute commissioned Mercer to ascertain the number of core investment professionals working globally.

China, following India, Indonesia and Turkey, is among the four largest markets in terms of the size and growth expectations in core investment professionals.

India is estimated to have 10-year growth of approximately 33 percent, and more developed markets like the United Kingdom and the United States are projected to have 10-year growth of 10 percent and 9 percent, respectively.

The total number of core investment professionals was estimated to be roughly 1.05 million at the end of 2018. Mercer predicts that there will be 1.2 million in 10 years.

The current estimated market size of core investment professionals in China is 139,000.

Some broad-based trends are also said to disrupt the investment management industry as firms use algorithms, artificial intelligence (AI) and alternative data to perform more complex technical tasks.

The growth of machine learning, AI methods and use of alternative data for portfolio construction is significant globally but is most pronounced in Asia Pacific, where the development and integration of new technologies is highest, as suggested by the report.

Nick Pollard, managing director for Asia Pacific at CFA Institute, said it was exciting to see more and more vibrant financial elements coming from China as its financial sector further opens up.

“There are also reasons to believe that the Chinese market has abundant human resources and potential for scientific and technological development, which can have a significant impact on the sustainable development of the global financial market,” said Pollard.

The report was unveiled at the Eighth China Investment Conference that was hosted by CFA Institute and CFA Society Shenzhen in Shenzhen on Saturday.

The conference, themed “Fintech and Financial Innovation in the Greater Bay Area,” gathered about 300 experts and financial professionals from home and abroad to shed light on how fintech invigorates regional collaborative innovation and development.