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Da Cheng to launch income product

The Hong Kong office of the mainland firm has had a total return bond fund investing in China approved by the Securities and Futures Commission.

The Shenzhen-headquartered asset manager’s Da Cheng Total Return Bond Fund was approved for sale to retail investors in Hong Kong on 12 August, according to the regulator’s website. The offering document is not yet published.

FSA sought more information from Da Cheng, but it was unable to provide details before publication.

When the new product launches, the firm will have six funds for sale in Hong Kong, according to FE data. The funds mainly invest in China.

The firm’s Domestic Demand Growth Mixed Fund is for sale in Hong Kong through the Mutual Recognition of Funds (chart below).

At the end of 2018, the firm managed assets of RMB 209.1bn ($29.68bn). Out of that total, public assets under management were RMB 153.8bn, according to the firm’s website, which said it has 81 public funds, most of them for sale in China.

Da Cheng International, the Hong Kong affiliate, was established in 2009 and it holds Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII) quotas, according to the firm’s website.

Other asset managers from mainland China are tapping Hong Kong market as well.

In March, this year, ICBC Credit Suisse, the mainland joint venture firm, received a greenlight from the SFC to launch two products: the ICBC Credit Suisse China Focused Equity Fund and the Global Fixed Income Fund.

In October last year, China Asset Management Company in Hong Kong received approval from SFC to launch the China AMC Mackenzie Global Strategic Income Fund. The fund is the firm’s first global balanced fund, FSA previously reported.


Dacheng Domestic Demand Growth Mixed Fund vs the category average and benchmark

Source: FE. Three year cumulative return in US Dollars. The fund has two benchmarks and the CSI Universal Bond Index is not available in FE.

Part of the Mark Allen Group.