Tencent, Hillhouse team up to help manage China’s offshore trillions – Bloomberg
What happened: China’s video and gaming giant Tencent will cooperate with Beijing based Hillhouse Capital Management to provide overseas asset management services for retail Chinese investors who already have existing assets internationally, according to an emailed statement which didn’t specify an exact time frame. The assets will be managed by GaoTeng Global Assets, a one-year-old venture created by Tencent and Hillhouse.
Why it’s important: As RMB weakens, global trade tension escalates, and domestic credit tightens, more Chinese investors are seeking to diversify their holdings outside of China. Wealth preservation and expansion in China increased drastically during the past few years as incomes rise and more people move to the big cities. According to research in 2016, Chinese investors are expected to add more than $1.9 trillion to their international investments by 2021.