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China Universal sets out European expansion plans

Shanghai-based China Universal Asset Management has established a Luxembourg SICAV from which it plans to launch a series of UCITS funds in the coming months to give European investors access to the Chinese capital market.

China Universal is ranked as among the top 10 Chinese fund management companies with around $58bn in assets under management at the end of June 2015.

Li Wen, chairman of the asset management company said the launch of the new SICAV marked a significant milestone in the expansion of China Universal into Europe.

The first UCITS product from the China Universal SICAV, will be a RQFII bond fund investing mainly in Chinese domestic fixed income available in the domestic inter-bank bond market.

“As fixed income returns in developed markets continue to remain low, we believe there will be considerable interest from European institutional investors, family offices and private banks in accessing the Chinese domestic bond market,” said Li.

China’s equity and bond markets have been slowly opening to outside investment through such new initiatives as the Shanghai-Hong Kong Stock Connect scheme and the new Mutual Funds Recognition initiative which launched on 1 July.

Shelley Yang, head of international business of China Universal said the company’s existing Chinese domiciled funds have provided outstanding returns for our clients.

“We are delighted to be extending our successful investment formula to European investors.  Our strategy is to build trusted partnerships with international investors who are seeking to invest into China,” Yan said. 

Part of the Mark Allen Group.