East Capital, a Nordic-based specialist emerging and frontier markets manger, has launched the East Capital China A-Shares Fund to invest in the renminbi mainland China equities markets.
The Luxembourg fund is already fully subscribed.
East Capital is the first fund management firm domiciled in the Nordic region to receive a quota approval from the State Administration of Foreign Exchange under the qualified foreign institutional investor programme.
East Capital’s Asian operations are managed out of Stockholm and Hong Kong. In 2010 the firm established an office in Shanghai.
Karine Hirn, partner and co-founder of East Capital, says: “We … believe that reforms in the financial sector in China and the impending reduction of global investors’ current major underweight to Chinese equities could potentially trigger a re-rating of the market.
“With valuations in China currently trading at historically low levels and the pace of growth likely to remain higher than in other major economies, the return potential offered by the A-Shares market is significant.”
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