Citigroup and ChinaAMC launch China equity fund
Citigroup First Investment Management and China Asset Management have jointly launched a retail fund in Hong Kong targeting equities traded onshore and offshore in China.
The China Select Fund is the first Hong Kong Securities and Futures Commission-authorised Chinese equity fund to be managed by ChinaAMC, the Hong Kong branch of China Asset Management.
The portfolio will be invested in domestic and overseas-listed companies headquartered in or which have significant business exposure to China. It is expected that approximately 10% to 30% of its portfolio will be exposed to China A-shares listed on the Shanghai and Shenzhen stock exchanges
ChinaAMC will adopt a combination of bottom-up stock selection and top-down macro and sector overlay for its investment strategy.
Anthony Ho, deputy CEO of ChinaAMC (HK) said: “The fund intends to invest in both onshore and offshore Chinese stocks and can benefit from valuation differences of the same or similar companies in different stock exchanges and dynamics between different markets.
“Given their market potential and sustainable long-term growth outlook, Chinese equities are currently under-represented in the global equities portfolio. The China Select Fund has been designed to generate alpha and enable investors to capitalize on these market opportunities.”
Singapore investors can also access the product through a restricted scheme which is subject to Singaporean regulatory requirements.
The open-ended fund has a number of share classes including US dollar, Hong Kong dollar, Australian dollar, Japanese Yen and euro. Minimum initial investment is $1,000 or equivalent.