Deutsche Asset Management intends to grow its operations in Asiawith a particular focus in China, on expectations of economic growth in the region,the South China Morning Post reportedApril 13, citing Jon Eilbeck, Asia-Pacific head at Deutsche Bank AG.
Eilbeck said the proposed Hong Kong-Shenzhen stock link and potential inclusion ofA-shares in the MSCI index are expected to stimulate economic growth in the region.
A-shares are Chinese shares bought and traded on the Shanghaiand Shenzhen stock exchanges.
The executive said he was optimistic MSCI would include A-sharesin its emerging market indexes from 2017. A decision regarding inclusion of theA-shares will be announced in June.
The potential inclusion may lead to US$30 billion of inflowsfrom funds referencing the MSCI China under a 10% market cap, Eilbeck estimated.
Deutsche has offices in Hong Kong, Singapore, Tokyo, Australiaand South Korea, and Eilbeck said the company will focus on expanding its businessin these locations through organic growth. Deutsche's Asia-Pacific business representsless than 10% of its global business asset size, which the company intends to growin the next few years, he said.