Stockholm-based asset manager East Capital is repositioning its Chinese equity fund as a thematic investment product investing in environmental and sustainability trends in China.
The Luxembourg-domiciled East Capital China fund, a Ucits product, was launched in 2007 and was among the first European funds to gain a licence under the qualified foreign institutional investor (QFII) scheme, which allows foreign investors to buy Chinese mainland-listed equities, or A-shares.
In March 2015, the fund gained approval from the Luxembourg regulator to invest all of its assets in A-shares via the Shanghai-Hong Kong Stock Connect scheme.
From January 18, the fund will invest mainly in Chinese companies, listed onshore and offshore, that are developing products and technologies designed to meet environmental challenges in China. These include firms in sectors such as renewable energy, clean air and sustainable agriculture.
"The fight against pollution is a fundamental and structural trend in China, and has also become a governmental priority," says Karine Hirn, partner at East Capital, who is based in Hong Kong. "This implies strong policy support and large investments, as well as stricter implementation of regulations for the non-environmental friendly companies."
Peter Elam Håkansson, chief investment officer at East Capital, will manage the fund, supported by a team in Hong Kong led François Perrin, formerly head of Greater China at BNP Paribas Investment Partners Asia.
"China is the largest clean-tech market in the world and the investment universe of environmental stocks consists of fast-growing innovative companies and often upcoming global leaders," says Hirn.
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