Heptagon Capital and Harvest Global Investments have launched an actively managed Ucits fund investing in Chinese A-shares.
The Harvest China A Shares Equity Fund invests in stocks listed on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, for which foreign investors need a licence and a quota.
The fund was launched under the renminbi qualified foreign institutional investor (RQFII) programme, which allows asset managers to raise offshore renminbi and invest them into bonds and equities in China.
Heptagon Capital, a London-based specialist asset manager, will launch the fund on its Irish Ucits platform. One of China’s largest asset managers, with over $50 billion (€37.4 billion) of assets under management, Harvest Global Investments will take on the role of sub-investment manager.
Peng Choy, chief executive officer at Harvest Global Investments in Hong Kong, says: “Since 2011, we have been at the vanguard of efforts to allow international investors to gain exposure to the economic opportunities in China and the wider Asian markets, across all asset classes.
“Recently, we have pioneered the listing of exchange-traded funds on various global exchanges, with exposure to the CSI 300 and the MSCI China A Index, and feel that this fund launch is a natural progression of these global efforts.”
Heptagon Capital’s founding partner Fredrik Plyhr adds: “With the Shanghai composite trading at the cheapest level on record, relative to the MSCI Emerging Markets Index, we feel that the timing of this product will prove opportune for our all stakeholders.”
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