Others News
- China Asset obtains US$2b QDII quota
Date: 13-Sep-2007 Sources: (Shenzhen Daily)
CHINA Asset Management Co. has won a foreign exchange quota of US$2 billion for a planned fund that would allow domestic investors to invest in overseas stock markets, a company source said yesterday.
China Asset, the country's largest mutual fund company, aims to launch the stock fund under the qualified domestic institutional investor (QDII) program, soon after a similar move by domestic rival China Southern Fund Management, the source said.
Shenzhen-based China Southern kicked off the sale of its first such fund yesterday to raise up to US$2 billion under the QDII program, which is partly aimed at easing upward pressure on the yuan.
Demand for the fund will be closely monitored by domestic investors since it could provide a gauge of the Chinese appetite for overseas stocks at a time when domestic share prices are up fivefold since early 2006.
China's main stock index tumbled 4.51 percent Tuesday, hit by concerns that the government may take more monetary-tightening steps to cool inflation, which rose to 6.5 percent in August, the fastest pace in more than a decade.
China Southern has been seeking to play up concerns through domestic media that A shares are getting risky and that investors should consider diversification. It has said it would seek an extra foreign exchange quota if the fund is oversubscribed.
'If China Southern's QDII fund is well received, we will launch ours shortly. If not, we will wait until the end of this month,'said the China Asset source, who asked not to be identified.
Sponsor Results:
