Funds News
- ABN, Schroders JVs to launch new fund
Date: 18-Jul-2007 Sources: (Shenzhen Daily)
A CHINESE fund management joint venture with Dutch bank ABN AMRO and another with British money manager Schroders have won approval for new stock fund issuance, company executives said yesterday.
Beijing-based ABN AMRO TEDA Fund Management Co., in which ABN AMRO holds a 49 percent stake, plans to raise up to 12 billion yuan (US$1.59 billion) by selling a stock fund next week, said Xia Shenglan, a marketing officer for the fund venture.
Shanghai-based Bank of Communications Schroder Fund Management Co., which is jointly invested by Bank of Communications and Schroders, was preparing to launch its new mutual fund, focusing investments on blue-chip stocks, said spokeswoman Tong Ling.
The size of the fund had yet to be decided, she added.
'I think there is no big problem for ABN AMRO TEDA to raise about 10 billion yuan or even more,'said a source close to ABN AMRO TEDA.
'Retail investors are beginning to understand it is not as easy as before to earn money on their own from the speculative stock markets,'he added. 'They need professional help and that is also what the government wants to see.'
The government is quickening the approval of new funds in an apparent bid to ease concerns among investors that a spate of new share offers scheduled for later this year would push down the stock market sharply.
China needs a larger mutual fund industry as stock supply is expanding partly because the Central Government is encouraging many Hong Kong-listed Chinese firms to go back to the mainland for domestic listings, analysts say.
Last week, fund industry sources told reporters that the regulator was expected to approve at least three new stock-oriented mutual funds, including products to be offered by China joint ventures of Belgian banking and insurance group KBC and Schroders.
China Post & Capital Fund Management Co., the fund arm of the national postal agency, is also expected to receive the go-ahead for its new fund soon, according to the fund sources.
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