China is ‘most riskiest market’ for compliance, regulation – study
29 Sep 2017

China is viewed by asset management and private equity firms as the most riskiest place in the world to do business, ahead of the UK and US, with the regulatory factor playing a key role, according to global law firm Ropes & Gray.

In a new study conducted by the firm, more than a third of the two groups surveyed, 38% of asset managers and 36% of private equity firms, viewed China as the riskiest market, while 19% of asset management firms and 14% of private equity houses cited the UK as the market that poses the ‘most significant risk’ to their businesses.

The US was identified by both groups (11% of asset managers and 14% of private equity firms) as the world’s third riskiest market.

Amanda Raad, international risk partner at Ropes & Gray, which conducted the survey, highlighted the ‘dramatic change’ in the regulatory and enforcement scene in both China and UK.

“China is anti-corruption driven, especially in recent years where the government has launched a crackdown on crime,” she said, referring to a media report which stated that between 2012 and 2016 China punished nearly 1.2 million people for corruption, repatriated 2,600 fugitives, and recovered $1.2 billion worth of assets.

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