JPMAM reopens its A-share fund after receiving additional QFII quota
06 August 2013
News, China, Hong Kong
By Asia Asset Management
JP Morgan Asset Management (JPMAM) has reopened the JP Morgan China Pioneer A-share Fund after it was granted an additional QFII investment quota of US$150 million from China’s State Administration of Foreign Exchange (Safe).
JPMAM says the fund was the first fund of its kind authorised in Hong Kong to enable investors to indirectly participate in the domestic Chinese stock market, though numerous competitors have since come to the market.
Eddy Wong, head of intermediary business at JPMAM, says: “We are pleased to reopen JPMorgan China Pioneer A-Share Fund [and offer] investors [the capacity] to acquire through the fund direct exposure to a wide variety to domestic-listed enterprise leveraged to China’s fast and sustainable economic growth. Given today’s attractive valuations, it is also a very good time for investors to participate in this exciting market. With an affordable minimum subscription amount, investors can subscribe to the fund through major local banks or directly through our Investment Centre and online JP Morgan eTrading platform.”
Lilian Leung, fund manager of JPMorgan China Pioneer A-Share Fund, said, “Macro numbers may still be challenging during the early stages of the new reforms, but the latter should lead to healthier development of the economy in the medium to longer term. \In terms of earnings growth forecasts and valuations, the China A-Share market has largely reflected all of these challenges at current levels. Also, based on previous experience, the potential liquidity drain from the resumption of IPOs should not have a significant impact on the market. Therefore, we believe China A-Shares present a good buying opportunity for long-term investors.”
“Currently, we prefer sectors benefiting from ‘new urbanization’ and economic restructuring, including discretionary consumption (such as auto, home appliance, internet, leisure and entertainment), healthcare, information technology, and property developers,” she adds.
“The fund has the flexibility to allocate 70% to 100% of the portfolio to China A-Shares and a maximum of 30% to H-Shares, RMB Treasury bonds, other fixed income instruments or cash in response to different market conditions. In other words, the investment objective of the fund is to achieve long-term capital growth by investing primarily in mainland securities, including but not limited to A-Shares.”
JPMAM’s Greater China Team is one of the largest in the region, managing over US$15.1 billion of dedicated assets into the Greater China region as at 30 June.
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