by DU Meng

At this year's Lujiazui Forum, Chinese regulators announced a series of sweeping new measures to deepen financial opening. The central bank launched eight initiatives to simplify cross-border investment, the securities watchdog released a "1+6" reform package to upgrade the STAR Market, and the national financial regulator introduced new policies to strengthen Shanghai's role as a financial hub.

As these reforms take shape, foreign asset managers are showing renewed confidence in the Chinese market.

Founded in London in 1804, Schroders is a global asset management firm offering active strategies, wealth solutions, and private market investments. As of December 31, 2024, Schroders managed £778.7 billion (nearly US$1 trillion, 7.53 trillion yuan) in assets globally.

In a recent interview with Jiemian News, Guo Wei, President of Schroders China, discussed emerging opportunities in the Chinese market and how the firm is adapting its strategy in the age of artificial intelligence (AI).

Jiemian News: When did Schroders enter the Chinese market, and how has your strategy evolved?

Guo: Schroders marked its 30th year in mainland China in 2024. We were among the earliest foreign asset managers to enter the market, and we've built a presence across onshore, outbound, and inbound investment channels. Our operations include a wholly foreign-owned public fund, a joint venture fund with Bank of Communications, a wealth management joint venture, and several private market strategies spanning private equity, real estate, and renewable infrastructure.

Collaboration has been key. We've worked closely with Bank of Communications for nearly two decades. These partnerships have allowed us to grow with the market, sharing global expertise while learning from local innovation.

We also see growing opportunities in private markets. Through Schroders Capital, our dedicated platform, we offer Chinese investors access to diversified private assets and help support the country's green transition.

 

Jiemian News: In your view, how has China's financial opening evolved in recent years? What role do foreign institutions play in that process?

Guo: China's commitment to financial reform has been steady and forward-looking. We see more opportunities now than ever before—from pension reform and rising wealth to the push for high-quality growth.

Foreign firms can bring complementary strengths. At Schroders, we aim to be a two-way bridge: bringing global perspective into China and helping Chinese investors access international opportunities. Our global research network helps us assess Chinese companies in a broader context, while our local teams bring vital on-the-ground insight. We've also managed global portfolios for Chinese institutions for nearly two decades.

This exchange of knowledge and capital supports Shanghai's ambition to become a world-class asset management hub.

 

Jiemian News: What does "high-standard opening-up" mean from your point of view?

Guo: It's about transparency, global alignment, and long-term commitment. Regulatory convergence – in areas like intellectual property and data governance – makes it easier for foreign firms to operate. Greater clarity around cross-border flows and risk controls also boosts investor confidence.

Equally important is policy direction. China is encouraging capital to flow into sectors like advanced manufacturing, green energy, and digital infrastructure. This creates alignment between foreign investment and the country's long-term goals.

 

Jiemian News: What additional steps could China take to attract more global capital?

Guo: At its core, high-standard opening-up is about building a rules-based, transparent, and globally integrated financial system. It means aligning more closely with international norms – whether in areas like intellectual property, environmental standards, or the handling of cross-border data. These moves help reduce friction for global institutions operating in China and make the market more accessible and predictable.

It also involves expanding the scope of what foreign firms can do—such as lifting restrictions on market access and allowing broader participation across industries. At the same time, improved policy tools – ranging from more efficient tax and customs processes to greater clarity on FX risk management – help make long-term investment in China not only viable but compelling.

Beyond access and infrastructure, China is encouraging foreign capital to take part in its future. Through incentives for reinvestment, greater exposure to advanced sectors, and more flexible entry points into emerging industries, the country is creating space for global investors to align with its industrial upgrade agenda and benefit from the growth of new productive forces.

 

Jiemian News: Attracting more global financial institutions and long-term capital is a national priority. What are the key areas where China could improve to support this goal?

Guo: To enhance its appeal to long-term global capital, China could continue making it easier for foreign investors to participate – by simplifying regulatory procedures, expanding bond market access, and increasing the transparency of key processes. At the same time, easing restrictions on foreign ownership and allowing broader access to instruments such as government bond futures would send a strong signal of openness.

Equally important is broadening the landscape of where foreign capital can go. With programs like QFLP and new cross-border pilot schemes, foreign institutions are gaining more meaningful ways to integrate into China's financial system—not just as investors, but as long-term partners.

There's also growing opportunity in forward-looking sectors. By encouraging capital to flow into digital infrastructure, green finance, and next-generation manufacturing, China is inviting global players to be part of its structural transformation.

We also see potential in deepening institutional partnerships. As a UK-headquartered firm, we're eager to participate in the ongoing reform of China's asset management landscape and would welcome more mechanisms for cooperation between Chinese and British managers. Initiatives such as delegated portfolio management and shared global mandates can foster a more robust and interconnected investment ecosystem. Similarly, we hope to see broader access for foreign wealth managers in China's evolving retirement finance market, where diversified and specialized products are in growing demand.

 

Jiemian News: What impact is AI having on capital markets and investment strategies?

Guo: AI is reshaping how capital markets operate – from trading and pricing to compliance and risk control. New tools are making markets more efficient, but also more dynamic. For example, after DeepSeek's release in 2024, tech indexes surged, and AI-themed ETFs attracted record inflows.

Beyond capital markets, AI is becoming a growth engine. Leading Chinese companies are ramping up investment in AI infrastructure, which is driving demand for semiconductors and intelligent manufacturing. China is moving from technology adoption to technology leadership, which could reshape its role in global markets.

 

Jiemian News: Where do you see the most promising investment opportunities in China?

Guo: We see enormous potential in sectors that reflect China's shift toward a more consumption-driven, innovation-led economy.

On the high-tech front, industries like AI, semiconductors, and robotics are at the heart of China's strategy for greater self-reliance. These areas aren't just policy priorities – they also have strong market fundamentals. Continued investment and talent development in these fields are creating long-term growth opportunities across both mainland and Hong Kong equity markets.

At the same time, we're watching sectors tied to infrastructure and energy transition. Electric vehicles and smart grid technology, for instance, remain key drivers of China's green transformation. With the country already leading in areas like EV battery manufacturing, the ripple effect across related industries is substantial.

Then there's a quieter but equally compelling story in lifestyle and wellbeing. As incomes rise and preferences evolve, we're seeing growing demand for services that enhance quality of life – ranging from health and fitness to pet care and leisure.

Hong Kong also continues to offer a rich mix of opportunities. It combines access to new-economy growth with the stability of more traditional, defensive sectors. Whether it's healthcare, tourism, entertainment, or global consumer brands, Hong Kong-listed companies remain an essential part of any balanced China strategy. The city's unique position as a connector between East and West gives it enduring relevance in a changing world.