First State Investments has received approval from Hong Kong’s Securities and Futures Commission (SFC) to sell its China A Shares Fund and Global Emerging Markets Focus Fund to retail investors in the SAR, according to the regulator’s records.
The China A Shares Fund, which is a Dublin-domiciled Ucits product, was first launched in the UK in June, according to a statement released from the firm at the time. Just last month, the product also received registration from the Monetary Authority of Singapore to be sold in the Lion City.
The fund, which will be managed by Hong Kong-based Quanqiang Xian, will invest in high quality companies listed in the mainland and will incorporate ESG factors, according to the statement.
This is not the first time that the firm will be managing a China A-shares focused product. The firm already has a China A-shares strategy – also managed by Quanqiang, which was launched in 2009 and has assets of around $533m. However, the strategy is only available to institutions, according to a separate document from the firm, which did not say whether the Ucits fund will replicate the strategy that was launched in 2009.
The firm has also managed other Greater China strategies, according to the statement. In total, it manages around $4.5bn in products that invest in onshore and offshore Chinese securities. In Hong Kong, the firm already sells four China-related equity products, excluding the A shares fund, according to FE data.
FSA sought more information from the firm, but it was not able to provide more details in time for publication.
“The launch of the [Dublin-domiciled] First State A Shares Fund reflects investor demand for a Ucits product with access to an equity market that is still relatively untapped and underrepresented in investor portfolios,” Michael Stapleton, managing partner at First State Stewart Asia, said in the statement.
Meanwhile, the Global Emerging Markets Focused Fund, which is a Ucits product that invests in mid-to-large cap emerging market equities, was first launched to accredited and retail investors in Singapore in November last year, according to its prospectus.
Fund push in Singapore
Besides the two products, First State also registered two listed infrastructure funds to Singapore’s retail investors last month.
The Global Listed Infrastructure Fund has been available for sale to accredited investors in Singapore previously and is also authorised by the SFC in Hong Kong, according to FE data. Meanwhile, the Sustainable Listed Infrastructure Fund is new to both the Hong Kong and Singapore markets.
The firm has been aggressive in launching products in Singapore. In October last year, it lodged an application with the MAS to launch 12 funds for the retail market. In total, the firm now offers at least 23 products to retail investors and 33 funds to accredited investors in Singapore, according to FE data.
In Hong Kong, the firm has 27 SFC-authorised funds, according to the records from the regulator.
Globally, the firm manages around $151.2bn in assets.
