Aberdeen Asset Management has unveiled its plans to launch a fund investing in Chinese equities after being granted with the Chinese RQFII license.
The group will launch the new fund, Aberdeen Global – China A Share Equity, on 16 March, 2015 following the receipt of RMB600m (£60m) investment quota from Beijing in late 2014.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The new fund will be marketed to investors in Singapore and Hong Kong, with a minimum investment of $200,000 besides offering other share classes for European-based investors, with a higher minimum of $1m initial investment.
The Luxembourg-domiciled Fund will run a concentrated portfolio of 25-30 stocks, from an investable universe of around 2,000 listed companies that offer long-term prospects.
Aberdeen Asset Management head of Chinese equities Nicholas Yeo said: "A strategy of focusing on quality of growth is right but there will be legacy issues for years to come in the shape of bad debt, corporate malfeasance and even outright fraud.
"So with this fund we are not saying now is the right time to buy the market, but asking investors to consider China as a long-term proposition – one, furthermore, we have been working on indirectly for many years through the build-up of our team and mainland research."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
