China Universal Asset Management has pushed ahead with plans to launch Ucits funds investing in mainland Chinese assets by signing a deal with BNP Paribas Securities Services.
The Paris-based asset servicing firm will be custodian and fund administrator to a fund investing in offshore renminbi bonds using the renminbi qualified foreign institutional investor (RQFII) quota of China Universal's Hong Kong subsidiary.
This Ucits vehicle ought to help China Universal, which launched its first RQFII fund in 2012, gain more investors in Europe and Asia, where Ucits funds are widely distributed.
In addition, BNP Paribas Securities Services says it will support China Universal Asset Management (Hong Kong) as it invests in China A shares using the Shanghai Hong Kong Stock Connect programme.
"Renminbi internationalisation will further enhance the demand for access to the Chinese mainland market," says Shelley Yang, head of international business at China Universal Asset Management. "With our upcoming Ucits funds we will provide this possibility through RQFII and also Stock Connect."
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