Pension Funds letter

Amundi Pension Funds Letter n°14


23 March, 2022

> 10 minutes
Amundi Pension Funds Letter n°14

23 March, 2022

> 10 minutes


The Red Dragon continues its ascent

In this latest edition of Amundi Pension Fund Letter we turn our gaze to China. The world’s second largest economy since 2010, China is now emerging from the United States’ shadow and may well become the world’s leading economic power by 2030.

China’s prospective position in the new international order has also been highlighted by the recent conflict in Ukraine. After an initial passive stance to the crisis, it has shifted to becoming strategically neutral. Its intervention is a game-changer and a role as a mediator would affirm its position as a global geopolitical power.

The search for Common Prosperity has seen many recent regulatory adjustments and crackdowns, which may have led some to be deterred from investing in the country. We explore these impacts and what this might mean for China’s growth and economic prospects.

China’s increasing global prominence across all spheres means it can no longer be overlooked by global investors, particularly as a diversifier given its low correlation to developed markets. But what is the best way for investors to gain exposure and take advantage of China’s compelling domestic demand and growth story?

Aside from the investment rationale, consideration should also be given to how international institutional investors, such as pension funds, can access the Chinese financial markets. Whilst the percentage of foreign investment in domestic Chinese assets has grown in recent years, the overall exposure remains low and well below the relative share of China in the global economy. We look at how this has evolved and the different options available to pension funds wanting to gain access.

We then turn to the developments in China’s own pension system, the world’s largest, and the reforms it has put in place as it tries to address its challenges in inequality and demographics.

This edition wraps up with our regular focus on pension funding ratios. While funding ratios of European pension funds have continued improving since our last Pension Fund Letter in December 2021, the future developments in the current bear market remain to be seen.

In brief, this edition highlights that regardless of the standpoint, China’s influence at a global level has grown significantly and it can no longer be regarded as a peripheral or emerging participant on the world stage.


  • China: Plotting a course for Common Prosperity
  • The giant awakes. How China is shaking up the global investment landscape
  • Chinese Pensions put to the demographics test
  • Pension funding ratios: Riding out the storm
  • Cross Asset Investment Strategy
  • To go further: The Amundi Research Center

To find out more, download the full letter 

Discover our Pension Funds dedicated solutions

This website is solely for informational purposes.
This website does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. Any securities, products, or services referenced may not be registered for sale with the relevant authority in your jurisdiction and may not be regulated or supervised by any governmental or similar authority in your jurisdiction.
Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. There is no guarantee that any targeted performance or forecast will be achieved.

Get in touch with us

Our online help service is available to answer your question.

My personal information

If you have a question about our company or one of our products, please complete the form to get in touch. Please do not mention your account numbers or critical data in this form.

CAPTCHA This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

(*) Required fields
All our job offers (Permanent and temporary position, Internship, Apprenticeship or VIE) are available on our dedicated website:

Register and apply directly online.

Amundi on Twitter