Of the first 10 Chinese fund management companies, six were located in Beijing. This was partly due to happenstance many of their shareholders were Beijing-based securities firms. But it was also because Beijing offers close access to wealthy institutions that are potential customers. It is Chinas second-largest centre for high-tech companies, another vein to mine. But ultimately Beijing has been a useful place to be because it is close to the China Securities Regulatory Commission CSRC and other key regulators. Little gets done in China without the official go-ahead at least not above board and proximity to mandarins is a competitive edge. Nonetheless, this year Beijing will lose its fund management industry....
