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Value Partners gains cross-border fund license in China
Wild domestic stock price fluctuations and the heavy hand of state manipulation of markets are encouraging foreign fund managers to tap China’s vast pool of savers. It’s not just international investors who struggle to cope with A-share volatility; Chinese investors can benefit from more diversification.
Yesterday, Value Partners said it would roll out its own-branded cross-border funds in the Mainland’s domestic fund market, having picked up the first Qualified Domestic Limited Partner (QDLP) license by a Hong Kong fund management firm.
“Currently, the vast majority (99.4%) of Chinese households’ assets are held in RMB with only 0.6% denominated in foreign currencies. In the wake of the recent stock market rout and the depreciation in Renminbi (“RMB”), Chinese investors are seeing an increasing need to diversify their portfolios and explore opportunities in overseas investments. Value Partners is preparing to launch its first QDLP fund before the end of the year. The QDLP fund will appeal to yield-chasing investors who look to diversify their investments across Asia,” said Value Partners in a statement.
Photo: Photo: up to 2011