Adoption of environment, social and governance (ESG) measures in a fund relies on trust in the reporting from the companies, and disclosure and transparency remain a major challenge, according to David Li, senior portfolio manager at Impax Asset Management.
China’s regulator is likely allow 10 more foreign managers to sell private fund products in 2018, according to Miao Hui, senior analyst at Cerulli Institute, who leads the China research initiative.
Investec Asset Management and Taiwan-based Mega International Investment Trust were granted onshore investment quotas in March, according to records from China’s State Administration for Foreign Exchange (SAFE).
Neuberger Berman has joined the growing number of global fund managers who have launched an onshore private fund via a wholly foreign-owned enterprise (IM WFOE) in Shanghai.
China’s Creditease Wealth Management has entered into a partnership with Amundi Asset Management to launch joint products targeting Hong Kong investors.
Kuala Lumpur-based CIMB-Principal Asset Management has launched Malaysia’s first China fund that uses renminbi qualified foreign institutional investor (RQFII) quota.
Oil contracts and Ucits funds have begun offering renminbi-based products after China scrapped some foreign exchange controls to catch up with international currency standards.
The inclusion of China’s onshore bonds on the Bloomberg Barclays Global Aggregate Index is seen as a positive development, but don’t expect a surge of capital in the short-term, managers said.
Value Partners’ fund manager Frank Tsui said the tariffs may lead to near-term market volatility, creating some buy-on-the-dip opportunities.
Investors in China’s technology sector should look beyond the flagship giants Baidu, Alibaba and Tencent, argues William Fong, director for Hong Kong China equities at Barings.
Part of the Mark Allen Group.
