PIMCO's Marcio Bogoricin: China's high-level opening-up signals a more trans...

by DU Meng

As China's institutional opening of its financial markets progresses steadily, foreign firms are finding new opportunities. PIMCO, a global leader in active fixed income investment, is among them, deepening its presence in China while bringing global expertise and products to a rapidly evolving market.

In an interview with Jiemian News, Marcio Bogoricin, Executive Vice President and Head of Global Wealth Management for Asia (excluding Japan) at PIMCO, shared his views on China's financial opening, the evolving needs of Chinese investors, and how foreign institutions can stand out in a dynamic but competitive landscape.

Marcio Bogoricin, Executive VP and Head of Global Wealth Management for Asia (excluding Japan) at PIMCO.

Jiemian News: When did PIMCO first enter China? Can you share the story of your market entry and how your business is structured here?

Bogoricin: China has always been a strategically important market for PIMCO. From a portfolio management perspective, it's an integral part of our global macro analysis and long-term opportunity assessment. As one of the largest bond markets in the world, China presents exciting opportunities for us to create value for global clients.

We've been working with institutional clients in China for over 20 years. In 2018, we established a Wholly Foreign-Owned Enterprise (WFOE) in Shanghai, and in 2020, we obtained regulatory approval to become a private fund manager and a Qualified Domestic Limited Partner (QDLP). Currently, we offer three QDLP funds to domestic investors and plan to introduce more flagship strategies to meet their evolving needs.

Beyond investment strategies, we've also focused on investor education. Through our "PIMCO Academy" WeChat column, we share foundational knowledge on bonds, public and private credit, and alternatives—supporting long-term learning and informed decision-making.

Jiemian News: China has steadily opened its financial sector in recent years. How do you view the impact of this opening-up? What opportunities has it brought to PIMCO, and how have foreign institutions contributed to China's financial market?

Bogoricin: China's financial opening has reshaped the landscape significantly. Easing foreign ownership restrictions in sectors like banking, insurance, and asset management has created a more competitive and dynamic environment. This not only draws foreign direct investment but also encourages domestic firms to enhance their services and operational efficiency.

The benefits are clear: foreign participation has increased, and investors now enjoy better product liquidity and diversity.

For PIMCO, this opening has unlocked numerous opportunities. We've introduced a broader range of fixed income products and engaged more deeply with local investors, helping us better understand their needs. That in turn fuels product innovation and diversification—where our expertise in core fixed income, balanced, income, credit, and alternative strategies can shine.

With over US$2 trillion (14.5 trillion yuan) in assets under management as of March 31, 2025, we are committed to supporting the long-term development of China's financial markets through our scale, experience, and innovation.

Jiemian News: One of the key phrases in China's 2024 Government Work Report is "expanding high-level opening-up." How do you interpret "high-level" in this context?

Bogoricin: This phrase signals China's commitment to building a more open and transparent market environment as part of its broader reform and high-quality development agenda.

It marks a critical and positive step in the ongoing evolution of China's financial markets. "High-level" suggests enhanced market mechanisms, a stronger role for market forces in resource allocation, and appropriate government oversight when necessary. These reforms promise more operational flexibility for foreign institutions.

It also reflects China's intent to deepen cooperation with other countries, not just in trade but in high-quality mechanisms of collaboration. This will open up more channels for foreign capital and help better integrate international investors into the Chinese economy.

Jiemian News: Attracting more foreign financial institutions and long-term capital is a priority for China's economic development. In your view, what are the key factors needed to achieve this?

Bogoricin: China has made impressive progress in attracting foreign financial institutions and long-term capital, and I believe this positive momentum will continue.

Key to sustaining this trajectory is the continued enhancement of market infrastructure—efficient payment systems, modern trading platforms, and robust settlement mechanisms are fundamental to creating a compelling investment environment. Equally important is fostering innovation in financial products and services. Initiatives such as the Greater Bay Area and the "Wealth Management Connect" exemplify how China is opening up and deepening integration in practical, forward-looking ways.

Equally vital is cultivating a culture of collaboration between domestic and international financial players. Joint ventures, knowledge sharing, and technology exchange can lead to outcomes that benefit all sides. At PIMCO, we emphasize long-term partnerships and the sharing of global best practices to broaden investment opportunities and reinforce market confidence.

Jiemian News: With China's financial market becoming more open, what new opportunities and challenges do you see for foreign financial institutions?

Bogoricin: On the opportunity side, Chinese investors are increasingly seeking diversification, particularly given today's macroeconomic uncertainty. Five or six years ago, many high-net-worth investors were targeting double-digit returns, often through real estate. With that sector slowing, return expectations have shifted.

Now, there is strong demand for high-quality fixed income and balanced products offering yields around 6–7 percent. In a volatile environment, these returns are very appealing. As China transitions into an aging society, stable income streams from fixed income products are becoming even more important.

We're also seeing growing interest in the "60/40" portfolio—60 percent equities, 40 percent bonds—which is a relatively new concept in China. This approach offers the growth potential of stocks and the stability of fixed income. Our research shows this model can generate near-equity-level returns globally, with 37 percent lower risk.

Thanks to our deep expertise in fixed income and multi-asset strategies, PIMCO is well-positioned to meet this demand. We use our broad global resources and quantitative analysis capabilities to identify optimal investment opportunities for our clients.

Jiemian News: What is your strategy for developing in China? How can foreign firms avoid homogeneity in such a competitive landscape?

Bogoricin: Our strategy focuses on innovation and localization to meet the diverse and evolving needs of the Chinese market. Foreign institutions can avoid homogenization by focusing on product and service differentiation—understanding local needs, applying global expertise, and tailoring their business strategies accordingly.

We closely monitor changes in China's economy and markets. Frequent macroeconomic analyses help us adapt our global strategies with agility. This ensures we aren't confined to a single investment style but can build diversified global portfolios that aim to deliver long-term returns and withstand market fluctuations.

Flexibility enhances our strategies' resilience across various market conditions, highlighting the unique qualities of PIMCO's active management model. It also underscores our ability to translate global expertise into solutions tailored to Chinese investors.