China CICC brokerage to launch first foreign product
SHANGHAI Jan 12 (Reuters) - China International Capital Corp. (CICC), co-owned by Morgan Stanley (MS.N), will become the first Chinese brokerage to invest clients' money abroad, the official Shanghai Securities News said on Saturday.
CICC plans to start taking subscriptions on Wednesday for a $4 billion fund that will focus on investing in Hong Kong and Asian stocks under China's Qualified Domestic Institutional Investor (QDII) programme, the newspaper said.
The fund, which may eventually be expanded to $5 billion, will invest between 25 and 95 percent of its money in equities, and up to 85 percent in Hong Kong-listed shares, the newspaper quoted an official at the fund as saying.
The fund will have a minimum subscription of 100,000 yuan ($13,775), the official said, an unusually high amount for a QDII fund.
Four Chinese brokerages have been given licences to do QDII business, joining fund management companies, banks, insurers and trust firms.
QDII firms, which can also invest in foreign money markets, have obtained quotas totalling over $60 billion and had actually invested $28.6 billion of that abroad by the end of October.
Interest in QDII funds is believed to have waned in the last couple of months because of weak global stock markets. ($1 = 7.26 yuan) (Reporting by Andrew Torchia, Editing by Peter Blackburn)
- Tweet this
- Share this
- Digg this
- Court orders Russia to pay $50 billion for seizing Yukos assets |
- Israel warns of long Gaza war as Palestinian fighters cross border |
- West agrees wider Russia sanctions as Kiev says forces near crash site |
- Russia, Germany up diplomatic battle over Ukraine sanctions
- Pushing locals aside, Russians take top rebel posts in east Ukraine