The Blackrock China US Dollar Bond Fund was approved for sale to retail investors in Hong Kong on 25 July, according to the Hong Kong regulator’s website.
FSA contacted Blackrock, but the the firm was unable to provide the expected launch date, or details on the investment strategy and differentiation from its existing BGF China Bond Fund.
Separately, Blackrock’s private fund management wholly-foreign owned enterprise (PFM WFOE) in China recently received an investment advisory licence from the Asset Management Association of China, as previously reported by FSA.
The new licence allows it to provide investment advisory services for private asset management products issued by onshore fund management companies and their subsidiaries in China.
However, WFOEs operating a private fund management (PFM) business or a qualified domestic limited partnership (QDLP) may not yet be profitable, warned Yoon Ng, Singapore-based director for Asia-Pacific insights at Broadridge Financial at media briefing in early July
A PFM licence allows foreign managers to offer onshore funds to domestic investors, while a QDLP licence involves money going out — it allows managers to raise onshore money to be invested in offshore products, within allowable quotas.
Only qualified investors, including institutional and high net worth investors, are allowed to invest in both products.
BGF China Bond Fund vs sector average
