Funds News
- China Asset to launch QDII fund
Date: 20-Sep-2007 Sources: (Shenzhen Daily)
CHINA Asset Management Co., the country's largest mutual fund company, aims to launch its first global stock fund next week to raise up to US$4 billion.
The firm has obtained a US$2.5 billion foreign exchange quota from the government to invest clients' money in overseas stock markets, but it has applied for an extra US$1.5 billion to match the US$4 billion overseas stock fund raised by rival China Southern Fund last week.
China Asset Management has been conducting a nationwide marketing campaign for the product and is confident it can win the additional quota.
The fund is tentatively scheduled to be launched next Thursday under the country's Qualified Domestic Institutional Investor (QDII) program.
The 18-month-old program, aimed at easing upward pressure on the yuan currency and broadening domestic investors' investment alternatives, initially drew little interest among Chinese investors.
That's because existing QDII products, mostly launched by banks, are largely funds of funds that focus on fixed-income products, whose returns have often been undermined by the appreciation of the yuan.
The government only recently allowed QDII products to invest in stocks.
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