SHANGHAI Jan 12 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
Four Chinese brokerages have been given licences to do QDII
business, joining fund management companies, banks, insurers and
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)