At the time that Hong Kong was being handed back to China in 1997, many local pundits worried that China would slay the golden goose. Hong Kong’s days as a liberal and successful international financial centre were numbered, they said.

Instead, certainly in terms of the funds industry, China appears to be trying to protect its golden goose to ensure that it is first in line for the ensuing benefits.

China’s preoccupation with looking after its interests is pervasive. Global fund managers have been allowed to set up joint ventures with Chinese partners on the mainland, but can only hold minority stakes. The latest news that many are having to lower their growth expectations as they face stiff competition from domestic counterparts comes as no surprise.