Ashmore, an emerging markets asset manager, has launched the Ashmore Greater China Fund.
The fund has a US dollar base currency and will invest primarily in onshore Renminbi denominated investments permitted under the Qualified Foreign Institutional Investor (QFII) scheme.
Ashmore was granted a QFII licence by the Chinese Security Regulatory Commission in September 2009, and has recently been allocated a quota of USD200m by SAFE.
The quota will allow Ashmore to offer its investors exposure to the onshore Chinese equity market for the first time.
The fund will invest directly in the domestic market and provide access to the local A shares and a larger range of companies, thereby reducing the risk from investing in offshore listings of Chinese companies. In addition to equities, the fund can invest in fixed income and cash.
The fund, a Guernsey class B collective investment scheme, will be monthly dealing after the initial lock-up period, which will end three months after the quota is filled.
Jerome Booth, head of research at Ashmore, says: “As one of the select financial institutions who have been granted a QFII licence, we’re very encouraged by this quota allocation. This reinforces our commitment to developing our investment capabilities in the Chinese domestic market and underpins our confidence in the growth of the region.”