Hong Kong Bank Lauches China Fund For Stormy And Calm Weather

Tom Burroughes

21 May 2015

BOCHK Asset Management, part of Bank of China (Hong Kong), has launched an “all weather” equities fund at a time of some uncertainties in the Asia region, with investors seeking a portfolio able to ride out differing market conditions.

The firm has rolled out the BOCHK All Weather CNY Equity Fund, a sub-fund introduced under the BOCHK Wealth Creation Series; it aims for long-term capital growth through primarily investing in China A-shares through the Renminbi Qualified Foreign Institutional Investor programme.

The minimum initial subscription amount of the fund is RMB10,000, $1,000 and HK$10,000 for the renminbi, dollar and Hong Kong dollar classes respectively. The fund is available for subscription from today to 5 June 2015.

The fund will have in its portfolio 80 to 120 stocks, chosen from more than 1,700 constituent stocks of the Shenzhen Composite Index. Selection will depend on factors such as stock valuation, growth and momentum, and fundamental research. The portfolio will be allocated among the selected stocks on an equal weighted basis. Restructuring of the portfolio will be subject to a quarterly review after assessment based on the above factors, the firm said.

“In view of China’s interest rate cuts and required reserve ratio reductions since November last year to stimulate the economy, the onshore A-shares market has been very active. Meanwhile, the mainland economy has been undergoing a transformation from its traditional, low value-added economic model to the development of high value-added new economy sectors,” Moses Lui, managing director and head of distribution business at BOCHK Asset Management, said.

“With these two factors in mind, we specially design this new fund to invest mainly in the Shenzhen stock market that offers greater access to the new economy sectors, helping investors to capture the investment opportunities in the growing new economy,” he added.