China unit of JPMorgan wins QDII nod
Updated: 2007-08-06 10:42
China International Fund Management Co, part-owned by a unit of JPMorgan Chase & Co, has won regulatory approval to invest outside China as the government seeks to stimulate the outflow of capital.
China International Fund will invest in the Asian-Pacific securities markets, including Australia, South Korea and Hong Kong, the Shanghai-based company said in a statement. It will also invest in companies that are based in the Asia-Pacific region whose shares trade in markets outside the region, said Bloomberg News.
China's government last month extended the qualified domestic institutional investor, or QDII, program to all fund managers and brokerages following Hua An Fund Management Co's trial participation. China Southern Fund Management Co and China Asset Management Co received QDII licenses from the securities regulator last month.
By letting fund managers, banks and insurers invest more abroad, China aims to ease pressure on its currency to appreciate and discourage investment that otherwise might fuel stock market and property speculation. China's benchmark CSI 300 Index has more than doubled this year to close at a record on Friday.
China International Fund, the fourth fund management company to receive a QDII license, is 49 percent owned by JPMorgan Asset Management (UK) Ltd. The firm had 56.9 billion yuan (US$7.52 billion) of assets under management at the end of June 30, according to China Galaxy Securities Co.
Hua An received a US$500-million government quota in September to pool foreign-currency deposits from local institutions and residents to buy securities abroad. In November, the company raised a US$196.6-million fund.
Chinese fund managers with more than two trillion yuan of assets under management are allowed to invest in equities, government and corporate bonds and asset- and mortgage-backed investments.
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