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First domestic fund granted license to offer QDII
An International Balance Fund has been granted a QDII (Qualified Domestic
Institutional Investors) license by the Chinese government, becoming the first
domestic investment fund to be given such a license.
A QDII license
allows domestic institutions and residents to invest money in overseas financial
products via mainland commercial banks and other financial institutions.
The latest move brings the number of China's Qualified Domestic
Institutional Investors to nine. The other eight are all banks, including the
state-owned Bank of China, the Industrial and Commercial Bank of China and
Citibank.
With a QDII licence, which is approved by the China Securities
Regulatory Commission (CSRC), the Hua An Fund now can accept investment funds in
U.S. dollars for overseas investment from Chinese citizens.
The fund will
invest in international capital markets such as New York, Tokyo, London and Hong
Kong, covering both high and low-risk financial products including shares and
bonds.
The other eight QDIIs focus most of their investment in financial
products with fixed income in overseas monetary market.
Domestic
institutions and individuals can subscribe to the fund with a maximum investment
of 5,000 U.S. dollars in a fixed five-year term, said Han Fanghe, general
manager of the fund.
A subsidiary company of Lehman Brothers Holdings
will take 100 percent responsibility to guarantee the principal.
Hua An
Fund Management Co., Ltd, established in June 1998, set up China's first
open-ended fund and now manages nine securities investment funds valued at 35
billion yuan, including four closed funds and five open-ended
funds.
First domestic fund granted license to offer QDII(Over)
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