Julius Baer has launched its $100m China Fund giving its private banking clients direct access to the country’s A-share market and the ability to capitalise on its 12th five-year plan.
Julius Baer was granted a $100m quota in May under its existing Qualified Foreign Institutional Investor (QFII) licence by the State Administration of Foreign Exchange (SAFE).
Capitalising on China’s maturing economy
According to Julius Baer’s head of research for Asia Mark Matthews, the China Fund is most likely to invest in subsidised housing through building materials stocks; insurance through insurance companies stocks; and the larger wallet through consumer stocks.
These themes are core areas for reform announced by the Chinese government in its 12th Five Year Plan (2011-2015).
“China’s economic growth remains above-trend and retains strong fundamentals, representing a key driver of global economic growth, despite recent tightening measures,” said Kenneth Ho, Julius Baer’s head of products for Asia Pacific.
He also added that the bank anticipates further appreciation of the Chinese currency this year.
Julius Baer also reiterated its plan to open a new representative office in Shanghai this year.