The Ashmore All Chinese Equity Fund gives institutional and retail investors access to H-shares listed on the Hong Kong stock market, A-shares that trade on the Chinese stock exchange, and American Depositary Receipt markets.
Through the so-called Ashmore All-China Equity Strategy, the company will invest in companies with sustainable earnings growth over the mid to long term that can provide structural improvements through research & development and reform.
It will also look for management teams with a strong execution capability, a verifiable track record, which pay attention to minority shareholders.
The Luxembourg-domiciled SICAV fund will use a bottom-up stock picking investment approach, based on identifying opportunities which are trading at a discount.
Ashmore said the fund comes as a result of continued growth in investor demand for dedicated China exposure in recent years as well as further allocations to China as part of broader emerging market holdings.
In 2014, Ashmore became the first asset manager outside of Greater China to be awarded a Renminbi Qualified Foreign Institutional Investor licence, allowing it to invest in China’s onshore stock market.
China allocated an RMB80m RQFII quota for London in October 2013, after the foreign investor scheme was expanded beyond Asia.
Reform
Christoph Hofmann, global head of distribution at Ashmore, said: “China is the largest emerging market economy and the second largest in the wold and is undertaking a dramatic reform agenda that will see its next phase of growth driven by domestic demand.
“The breadth and depth of its markets offers extraordinary access to companies that can benefit from this exciting, long-term investment story.”
Joana Arthur, equity product manager, added: “China’s companies are often under-researched, so dedicated and experienced analysis can unearth attractive mispricing opportunities.”
In other news, Euroclear Bank, the Brussels-based international central securities depository, and China Construction Bank, have today signed a memorandum of understanding to further develop the offshore Renminbi capital market.
The memorandum commits both parties to fully cooperate in developing and distributing offshore RMB financial products.
