London-based asset manager Ashmore Group has launched a Chinese equity fund that will invest in A-shares, H-shares and US-listed depositary receipts.
The firm will buy the A-shares, which are listed on China's mainland stock exchanges, with its renminbi qualified foreign institutional investor (RQFII) quota, which it won in 2014.
Ashmore already has a China equity fund investing mainly in A-shares under the same RQFII licence.
"We have seen growing investor appetite for investment in China on a dedicated basis... We believe the best way to do this is to employ a strategy that can 'access all areas'," says Christoph Hofmann, global head of distribution.
The Ashmore All Chinese Equity Fund will be a Luxembourg-domiciled Ucits Sicav with institutional, retail and retail distribution review (RDR) share classes.
"China's companies are often under-researched, so dedicated and experienced analysis can unearth attractive mispricing opportunities," says Joana Arthur, equity product manager. "We see sustained investor demand in this area, with China A-Shares expected to form a growing part of the MSCI EM index in the coming years."
©2015 funds global asia