US-based Invesco’s Chinese joint venture withstood a volatile first half and attracted USD 5.4 billion from local investors. However, the country’s persistent zero-COVID policy poses risks to the economy.

The company’s chief executive officer of the Asia Pacific, Andrew Lo, has said that China’s economy has been affected adversely by lockdowns and property sector turmoil. These events have squeezed investors’ holdings and sent asset prices lower. Notably, the Hong Kong-based unit of Invesco manages USD 1.4 trillion worth of assets globally.

Despite the short-term challenges, Invesco plans to expand its presence in China to capture flows when the market bounces back. He also stated that the firm’s global growth driver remains a very attractive market.

Reportedly, Invesco’s 49 per cent owned China joint venture (JV), Invesco Great Wall Fund Management, managed to raise USD 5.4 billion from Chinese investors in the first six months of this year. The said JV, with USD 50.51 billion of assets under management, has posted a profit of 756 million yuan in the first half.

In March, Invesco Great Wall launched a fund advisory business and has partnered with seven fund distributors, including Tiantian Fund and Ant Fund, two of China’s largest non-banking fund sales agencies.

Founded in 1978 by Charles W. Brady, Invesco operates under the Invesco Perpetual, WL Ross & Co, Trimark, and Powershares brand names. In Asia, the investment management company saw stronger demand from regional clients for its private investment products, such as private real estate funds.