Funds News
- China Southern ups size of QDII fund
Date: 18-Sep-2007 Sources: (Shenzhen Daily)
CHINA Southern Fund Management Co. said yesterday it has doubled the size of its first overseas investment fund to 30 billion (US$4 billion) after regulators agreed to increase its quota following strong demand from investors.
Shenzhen-based Southern Fund originally planned to raise 15 billion yuan in its first offering under the mainland's overseas investment program, often referred to as the Qualified Domestic Institutional Investor (QDII) program, during a subscription period from Sept. 12 to Sept. 28.
But the company stopped accepting subscriptions after the QDII product attracted funds of around 50 billion yuan on the first day of the subscription period.
The fund company said the foreign exchange regulator has approved its application to double its quota for its QDII product to US$4 billion from US$2 billion.
China Southern Fund is the second company, after Hua An Fund Management Co., to launch a product under the QDII program. The program allows funds to raise cash in yuan or foreign currency to invest abroad in a broad range of assets, including stocks and other securities.
Through its product, Southern Fund plans to pool local investors' money in yuan and invest in 10 overseas securities markets: the United States, Japan, Hong Kong, Switzerland, Italy, Russia, India, Brazil, Malaysia and South Korea.
Shanghai-based Hua An Fund Management offered the first QDII product last year in a trial of the program.
Regulators have also allowed domestic banks and insurance companies to invest abroad under the QDII program.
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