Global asset managers including BlackRock, Fidelity, and Neuberger have secured only 0.1% of China's mutual funds market since Beijing relaxed ownership rules in 2020. These six firms invested roughly $800 million combined but attracted merely $5 billion in assets under management, far below the RMB36.5 trillion total market size.

The disappointing performance stems from distribution hurdles, weak brand recognition, and intensified domestic competition. Schroders plans to exit its mainland mutual funds business just three years after launch, transferring assets to Neuberger. Most firms trail the break-even threshold of RMB25 billion in assets.

Neuberger leads with over RMB14 billion, followed by BlackRock at RMB11 billion and Fidelity International at RMB4 billion. Those who acquired existing joint ventures fared better, accumulating approximately RMB373 billion collectively. Geopolitical tensions and China's property market turmoil further complicated expansion efforts.

Foreign managers now compete alongside domestic players while maintaining joint ventures. The results signal that regulatory access alone cannot overcome entrenched local advantages and market dynamics that favor established Chinese firms.