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Value Partners gets first MRF nod

The firm’s distribution partner in China is Tianhong Asset Management, which manages the world’s largest money market fund.

Hong Kong-based Value Partners has received approval from the China Securities Regulatory Commission to launch its flagship fund, the Value Partners Classic Fund, in China under the MRF scheme, according to a statement from the firm.

The product is the firm’s first offering under the MRF scheme, according to CSRC records. The firm also submitted an application for another MRF fund this year, the High Dividend Stocks Fund, which is still pending approval by the regulator.

Value Partners’ distribution partner in China is Tianhong Asset Management, according to the statement, which did not provide the launch date or further distribution details.

Tianhong Asset Management is the manager of Yuebao, which is the world’s largest money market fund and is distributed via Alibaba’s online payment platform, Alipay. Tianhong is also the master agent for BEA Union Investment Management’s MRF funds, which now has two fund products under the scheme.

MRF outflows

Hong Kong-domiciled fund sales are in the red. Year-to-end October total net outflows were RMB 3.15bn ($460m), according to records from China’s State Administration of Foreign Exchange.

Nonetheless, foreign players continue to register new products. A number of firms have submitted eight applications this year to sell their funds in the mainland, with Amundi being the latest.

In total, MRF funds sold in China have seen net sales of around RMB 9.3bn since the programme began in 2015, according to SAFE.

Product push

Value Partners also has a private fund management (PFM) licence in China. The firm has launched four onshore funds to the mainland’s qualified investors since it received its licence in November last year.

Elsewhere, Value Partners is expected to bring a multi-asset technology-focused product to Hong Kong next year. In November, it was approved by the Securities and Futures Commission.

The firm also plans to introduce a fund focused on the Greater Bay area. The area comprises Hong Kong, Macau and nine mainland cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Zhaoqing, Huizhou and Jiangment.

Another effort is the aim to develop alternative offerings for professional investors. Management is developing several products, King Au, the firm’s CEO, told FSA previously. These include an Asian-focused private debt fund, a real estate fund and a private equity fund that will focus on private vocational schools in China.

Established in 2007 and listed on the Hong Kong Stock Exchange, Value Partners manages $15.5bn in assets on behalf of institutional and individual investors globally, according to the statement. The firm has offices in Shanghai, Shenzhen, Beijing, Kuala Lumpur, Singapore and London.

Part of the Mark Allen Group.