The China Select Fund is Hong Kong Securities and Futures Commission-authorized Chinese equity fund to be managed by ChinaAMC (HK), the Hong Kong branch of China’s fund management company, China Asset Management.
Citi has said that the fund allows Hong Kong retail investors access to a broad China investment strategy by tapping into multiple listings of China shares as well as access to the China A-share market.
According to the Citi, the China Select Fund portfolio will be invested in domestic and overseas-listed companies that are headquartered in or which have significant business exposure to China.
It is expected that nearly 10 – 30% of its portfolio will be exposed to China A shares listed on the Shanghai and Shenzhen stock exchanges.
CFIM head of China Business Development Harry Peng said the partnership between CFIM and ChinaAMC (HK) is expected to significantly differentiates the China Select Fund from other retail China equity funds available in the Hong Kong market, most of which are managed by overseas fund managers.
Citi has added that the investment strategy of the China Select Fund is a combination of bottom-up stock selection and top-down macro and sector overlay. The fund is an open-ended unit trust with multiple share classes (USD, HKD, AUD, SGD, JPY, EUR and GBP).
