Hong Kong investors warm to Mainland China funds

30 July 2014   Category: News, Asia, China, Global, Hong Kong   By Derek Au

A survey has revealed that 40% of investors in Hong Kong are interested in Mainland Chinese funds, as the two markets gear up to launch the mutual recognition of funds programme.

The research by China International Fund Management (CIFM), a Shanghai-based joint venture between JP Morgan Asset Management and Shanghai International Trust, found that 37% of Hong Kong-based investors were “relatively interested” in onshore Chinese funds while 3% were “highly interested”.

Among those investors that expressed an interest, 58% said they were bullish on the Mainland’s market, while 50% said they believed Chinese fund products could deliver good performance.

Some said that they saw these funds as having good growth potential, and that they could be used for diversification, according to the survey. Revealing the asset classes that they favour, the survey said 85% were positive on equity funds, while 39% saw bond funds and money market funds favourably. Others were bullish on balanced funds (26%), commodity funds (21%) and real estate funds (17%).

CIFM said that the preference of Hong Kong investors for Chinese equity funds was in contrast to the mood in the Mainland, where respondents were sweeter on low-risk funds.

The survey also found that of those that were positive on onshore Chinese funds, 53% were willing to allocate between 10% and 15% of their investment capital to these products.

Among the Hong Kong investors that are not interested in onshore Chinese products, the survey cited 67% that said it was because they were not familiar with the Mainland’s market, while 24% saw it as too risky.