China represents a potential windfall for foreign asset managers, but firms entering the Chinese market must have patience and faith, according to industry observers.

The Chinese fund industry requires patience because it is in its first stages of development and is being built from the ground up. And if a foreign player wants to capture a percentage of the estimated $1 trillion in savings deposits and the untold billions socked under mattresses, it will have to have a good measure of faith. That's because there are no hard and fast rules outlining how these new partnerships will work or, for that matter, specific regulations for the country's burgeoning fund industry, said Norman Sorensen, president of Principal International Inc., Principal Financial Group's international division.

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