Chinese investors eyeing Europe

Investment options

Some European countries are offering more options for fund managers than before.

"In Luxembourg we have various choices to cater to demand from Chinese investors," said Stephane Karolczuk, head of the Hong Kong office of Arendt & Medernach, Luxembourg's largest independent law firm.

In addition to UCITS, the Alternative Investment Fund Managers Directive may enable fund managers to consider other options such as the Specialized Investment Fund, the Undertaking for Collective Investment and the Investment Company in Risk Capital, which provide flexibility to investors, said Karolczuk.

At the same time, China's asset managers are seeking development away from their home country. The long-term strategy is to develop overseas distribution networks.

To be a global player, asset managers need to have their goods exposed widely in the global market and issue products that can be widely accepted, said Nocals Papvoine, a lawyer with the UK-based law firm Allen and Overy.

China's investors need to be exposed to more structured investment vehicles, said Thierry Lohest, a lawyer with the Netherlands-based law firm Loyens and Loeff.

Anyone who reads a Chinese newspaper will be amazed at the large number of property ads but people are inclined to save money in their bank accounts.

"We must persuade people that there are other investment procedures that can bring higher yields but it is not easy at the current stage," said Lohest.

He Wei contributed to this story.