Da Cheng gets the nod to launch first A-share RQFII balanced fund

19 December 2013   Category: News, Asia, China, Hong Kong   By Asia Asset Management

Da Cheng International Asset Management has received the green light from Hong Kong’s Securities Futures Commission (SFC) to launch the first RQFII balanced fund, the Da Cheng China Balanced Fund.

The approval follows China Securities Regulatory Commission (CSRC) lifting the restrictions that stipulated the first batch of RQFII funds must have 20:80 asset allocations in Mainland equities and fixed income in March this year. Under the new initiative, RQFII funds can now access a wide array of assets including IPOs, convertible bonds, interbank bonds, as well as index futures. The Da Cheng fund is scheduled to launch in early 2014.

Victor Lau, director of sales at Da Cheng International, notes that the fund is very flexible and can switch all its assets from equities to fixed income, or vice versa, depending on market conditions. He believes the fund can offer investors’ new investment opportunities and positive returns.

Da Cheng International Asset Management was awarded a total of 1.9 billion RMB (US$301 million) worth of RQFII quota from the State Administration of Foreign Exchange (Safe), which has been allocated to its first RQFII product, the Da Cheng China RMB Fixed Income Fund, and the Da Cheng China Balanced Fund.