Others News
- Two fund firms win QDII approvals
Date: 5-Nov-2007 Sources: (Shenzhen Daily)
YINHUA Fund Management Co. and China Universal Asset Management Co. have won approval to launch funds for global stock investments as the government diverts more funds to overseas markets.
Ten mutual fund management firms have now received such approvals since the government launched the Qualified Domestic Institutional Investor (QDII) program in April 2006.
The program is aimed at giving domestic residents more investment opportunities and to promote a better balance in its international payments.
Currently, fund management firms are allowed to raise a maximum of US$4 billion for each of such QDII funds from initial public offerings. The quota can be expanded to US$5 billion through additional offers, industry officials say.
Four fund management firms, including China Southern Fund Management Co., China Asset Management Co., JP Morgan's China fund venture and Deutsche Bank's China fund arm, have raised a combined US$16 billion for QDII funds.
Domestic investors have snapped up the products to diversify their holdings, amid concerns about risks in the high-flying A-share market.
The QDII funds are a factor behind recent surges in Hong Kong stocks and other overseas-listed mainland equities.
Domestic banks have also been jostling to launch similar products, while a number of major domestic brokerages have also obtained QDII licenses over the past few months.
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