First QDII foreign-currency fund in China approved
October 02, 2006 | BY
clpstaff &clp articlesThe State Administration of Foreign Exchange (SAFE) has approved China's first qualified domestic institutional investor (QDII) foreign-currency fund;…
The State Administration of Foreign Exchange (SAFE) has approved China's first qualified domestic institutional investor (QDII) foreign-currency fund; Hua An International Balanced Fund has an investment quota of US$500 million.
Investors in China can subscribe to the first foreign currency-denominated QDII fund with a minimum investment of US$5,000 for a term of five years. The QDII fund will invest in a diverse range of products, including global equities, real estate, securities, commodities and global funds.
The QDII rules were introduced in the People's Bank of China, Announcement No.5 on April 13 2006, which opened up the market for Chinese investors to invest in offshore securities through qualified financial institutions. The new rules also permit offshore service providers to target Chinese domestic investors.
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