Da Cheng International Asset Management has received approval from Hong Kong’s Securities Futures Commission (SFC) to launch its RQFII balanced fund, the Da Cheng China Balanced Fund, in early 2014.
With the launch of this new strategy, RQFII funds will now be able to access a wide array of assets including IPOs, convertible bonds, interbank bonds, as well as index futures, according to Asia Asset Management.
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As part of the move, State Administration of Foreign Exchange (Safe) has granted a total of RMB1.9 billion (US$301 million) RQFII quota for the Da Cheng China Balanced Fund to invest directly in A-share.
According to Victor Lau, director of sales at Da Cheng International, the fund can switch all its assets from equities to fixed income, or vice versa, based on market conditions.
Additionally, the fund will offer investors with new investment opportunities and positive returns.
The launch 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.
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