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Adapted from Deloitte; Chart: Axios Visuals

The Chinese government is set to eliminate restrictions on foreign ownership of fund management firms in 2020, opening up major opportunities for U.S. and other global firms to capture potentially trillions of dollars in new assets, according to new research from Deloitte.

Why it matters: The Chinese government has been taking steps in recent years to liberalize its capital markets and attract investment.

  • If those efforts continue, and China's economic growth doesn't slow significantly, the country's public investments should more than double in the next four years, Deloitte's study finds.

What's happening: China is facing a retirement crisis, Deloitte analysts argue, and is looking to replicate many aspects of U.S. retirement accounts like IRAs and 401(k)s to help counter the "savings gap" in its state-run Basic Pension System for Enterprise Employees, which could be depleted by 2035.

  • "Chinese authorities appear to be looking to shift more responsibilities for securing retirement income to employers and individuals."

The big picture: Much of the money invested in China is handled by so-called mom and pop retail investors, and Deloitte estimates the total banking and investment assets they hold will reach $30.2 trillion by 2023.

The intrigue: The growth of Chinese public investment plans is very tied to China's GDP growth. Given the divergent possibilities in the next few years, analysts see the possible inflows to public funds diverging by literally trillions of dollars.

  • "In the 'extreme bear case' of 0% GDP growth, the forecast predicts that public fund AUM will decrease slightly, standing at $1.7 trillion in 2023," analysts write in the report.
  • On the other hand, if China’s GDP averages 6% growth through 2023, public fund AUM is expected to grow to $3.9 trillion.

Go deeper:

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President Trump signed a bill to extend current levels of government funding into the new fiscal year, White House spokesperson Judd Deere confirmed early Thursday.

Driving the news: The Senate on Tuesday passed the legislation to fund the federal government through Dec. 11, by a vote of 84-10.

Editor's note: This is a developing news story. Please check back for updates.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 12:30 a.m. ET: 33,880,896 — Total deaths: 1,012,964 — Total recoveries: 23,551,663Map.
  2. U.S.: Total confirmed cases as of 12:30 a.m. ET: 7,232,823 — Total deaths: 206,887 — Total recoveries: 2,840,688 — Total tests: 103,939,667Map.
  3. Education: School-aged children now make up 10% of all U.S COVID-19 cases.
  4. Health: Moderna says its coronavirus vaccine won't be ready until 2021
  5. Travel: CDC: 3,689 COVID-19 or coronavirus-like cases found on cruise ships in U.S. waters — Airlines begin mass layoffs while clinging to hope for federal aid
  6. Business: Real-time data show economy's rebound slowing but still going.
  7. Sports: Steelers-Titans NFL game delayed after coronavirus outbreak.

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