With Assets Under Management (AUM) projected to hit USD5.0 trillion by 2020, at 1.25% the cumulative asset management fees generated on mainland China over the next decade could reach USD513 billion.
Osprey, FL (PRWEB) January 28, 2010
Burton-Taylor International Consulting LLC, a leading information and news industry market research, strategy and business consulting organization, today published a report showing mainland China financial market data/analysis spend to have topped USD340 million, exit 2009. What has historically been an opaque market, has now been revealed to have averaged 29.5% annual growth over the last six years. In addition to competitor market share, the new report shows user requirements for financial market data, news and capabilities in a level of detail never before available for mainland China and indicates Portfolio Managers, Researchers and Sales & Traders are broadening demand for economic data, news and analytic tools.
With combined revenue of USD204.8 million, China Finance Online, Wind and an array of other local China vendors, many not well known to Western market data competitors or analysts, command a 59.8% share of the mainland market. The two largest international players are Thomson Reuters and Bloomberg, with combined revenue of USD116 million generated from the country.
Continued financial market evolution, combined with asset management fees totaling USD16 billion in 2010, will fuel the purchase of more detailed and sophisticated investment data and tools by the 5,000 Investment Management professionals, who are the fastest growing segment in China. As the report illustrates, average per user spend on market data/analytics by this segment globally is 0.51% of management fees, or USD26,628 per annum. In China, however, average spend is only USD15,384 per user, indicating significant upside potential as the market matures.
“With Assets Under Management (AUM) projected to hit USD5.0 trillion by 2020, at 1.25% the cumulative asset management fees generated on mainland China over the next decade could reach USD513 billion,” says Douglas B. Taylor, Managing Partner of Burton-Taylor. “Growth of this magnitude draws substantial competition and will result in increasing demand for the information products and tools that enable market participants to both differentiate themselves and maximize return.”
The new report also details the changing user needs, satisfaction levels and product requirements of China Portfolio Managers, Researchers and Sales & Traders. Responses to surveys conducted with market data users in 2009 are compared to responses generated over prior years to reveal that increasing sophistication among market participants is widening the breadth of data demanded and lowering overall satisfaction levels with current data providers.
“We were not surprised to see that Portfolio Managers, for example, had shifted their primary criteria for selecting a data vendor away from attributes such as information update speed and toward attributes such as data quality, vendor reputation and ease of use. This is expected in an evolving market,” adds Taylor. “What did raise our eyebrows, however, was the significant drop in news content and portfolio management capability satisfaction levels, which indicates there may be opportunity for different products or vendors to capture revenue.”
“Burton-Taylor are proud to release our 77 page report ‘China Financial Market Data/Analysis Market Share & User Requirements 2010 - Key Competitors, Detailed User Needs – Portfolio Managers, Researchers, Sales & Traders’ which includes profiles of twelve of the largest vendors in China as well as providing user market data, news and capabilities needs in unprecedented detail,” Taylor says. “The report will help market data vendors, users and industry analysts clearly see one of the fastest growing and most unique opportunities in history.”
Mainland China market share estimates, along with other sample data from Burton Taylor’s China Financial Market Data/Analysis Market Share & User Requirements 2010 - Key Competitors, Detailed User Needs – Portfolio Managers, Researchers, Sales & Traders report, may be downloaded free of charge by visiting: http://www.burton-taylor.com/research.html and inputting research sample code CHINA2010PRW.
In early 2010, Burton-Taylor are also preparing to publish a second Bloomberg v Reuters News Analysis, with this report focusing on Fixed Income news.
About Burton-Taylor International Consulting LLC
Burton-Taylor International Consulting LLC is a business consulting organization focused on helping companies improve performance through improved Market Intelligence (Sector or Customer Research), Strategic Planning (BU/Company or Service/Product Strategy) and Revenue Generation (Marketing or Sales Plans). Burton-Taylor’s trademarked Hourglass AnalysisTM provides a structured, yet customizable process to help companies clearly target new opportunities, define new strategy, and plan new actions to maximize growth. While accomplished in the Americas, Europe and Asia, and with a strategic approach that remains generalist, Burton-Taylor have developed substantial expertise in the global market data, information, news, software and financial services industries, with deep focus in North America, China, India and Asia. For more information please see: http://www.burton-taylor.com
# # #