Large Investment Institutions Disinvesting In Communist China Turn To Europe For Expansion

Several major U.S. investment management firms are reportedly planning to hire additional staff in Europe on a large scale. Due to the Chinese Communist Party (CCP)’s erratic pandemic prevention measures and ongoing geopolitical tensions, the investment community has been losing patience and considering leaving mainland China to seek growth elsewhere, with significant U.S. investment firms, including Capital Group, JPMorgan Chase, PriceWaterhouseCoopers, and BlackRock, expanding their resident offices in Europe.

Dounan, a partner at Indefi Consulting in France, said that although the CCP has lifted its preventive measures and Communist China’s economy will likely rebound, the CCP’s high-handed approach to governance and the increasingly tense U.S.-China relationship compared with the endless investment opportunities promoted by Europe, so Europe is the best choice for U.S. investors to expand their business. Nusseibeh, Executive Director of Hermes Investment Management, also believes that “Europe is a desirable market and at the same time the largest market outside the United States with both institutional commonality and wholesale prospects.

Moreover, the solidity and responsibility of Europe, guaranteed by laws and regulations, meet all the focus of investors’ concerns.” The report states that the U.S. investment community has the advantage of being able to recruit clients with a global strategy, such as Nordic countries like Germany, Austria, and Switzerland, which will expectedly be the first targets for U.S. investment institutions due to their continued growth of affluent markets.