Hospital Authority funds two QFII mandates
30 August 2012
News, Hong Kong
The Hospital Authority Provident Fund Scheme (HA) in Hong Kong has funded two QFII mandates, Asia Asset Management has learnt. One of them is for China A-share equity in which China Asset Management was earlier appointed. The mandate’s size is US$70 million. The second is for a fixed income brief for $30 million. The HA appointed Manulife Asset Management (Hong Kong) Ltd for the CNY bond mandate.
The HA obtained its QFII license from the China Securities Regulatory Commission on January 31 this year to invest in Mainland markets and a quota of $100 million was secured from the State Administration of Foreign Exchange on April 10. The QFII scheme, launched in 2003, has seen a gradual relaxation of the investment guidelines. This year, Mainland authorities have further eased restrictions and to date, approvals have totalled around $7.25 billion. In addition to increasing quotas, the approval process has also been speeded up.
The move to invest in China comes at a time when markets on the Mainland have been struggling. Year-to-date, the CSI 300 share index has declined 5.79%. Some market quarters believe that valuations have fallen to attractive levels. The Hospital Authority Provident Fund Scheme is the second largest pension fund in Hong Kong with assets of about $5.65 billion as of the end of March this year.
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