The government has given the go-ahead to four new industry investment funds worth 46 billion yuan.

The State Council approved the funds, which are a type of private equity (PE) fund. The Shanghai Financial Industrial Investment Fund will raise 20 billion yuan, the Guangdong Nuclear Power Industrial Investment Fund and the Shanxi Coal Energy Industrial Investment Fund 10 billion yuan each, and the Sichuan Mianyang High Technology Industrial Investment Fund, 6 billion yuan.

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From: Lipper

•The subprime mortgage crisis was contagious; global markets had a roller-coaster ride in August.
•The China market was walled off from and outshone other Asian markets.
•Equity Sector Real Estate rebounded, while Equity Emerging Asia markets plunged.
•The fed funds rate stayed unchanged, while the government bond yield went down because of the rally. Details »

From: Lipper

• The Asian markets all slid down in July, except for the surging A-Share market in China. The accumulated increase of the Shanghai&Shenzhen 300 index of the last 12 months reached 295.67%.
• All China open-end fund categories recorded positive returns in August. The Equity, Mixed-Asset Aggressive, Mixed-Asset Flexible, and Mixed-Asset Balanced fund categories chalked up 16.97%, 14.98%, 13.99%, and 12.90%, respectively.
• The Shanghai closed-end fund index rose 11.06% in August. The discount rate of large-capitalization closed-end funds increased to an average 26.06%. Details »

China’s first overseas stock-oriented QDII (qualified domestic institutional investor) fund has been given approval to increase its fund sales limit to 30 billion yuan (4 billion U.S. dollars), Friday’s Shanghai Securities Journal reported.

China Southern Fund Management Co. Ltd. said the State Administration of Foreign Exchange had officially approved its application to increase the fund sales, as subscription was near to 50 billion yuan (6.67 billion U.S.dollars) in the first day, far exceeding the scheduled limit of 15 billion yuan (two billion U.S. dollars).

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Foreign assets of Hong Kong’s Exchange Fund fell by 7.3 billion HK dollars (about 1 billion U.S. dollars) in August to 995.6 billion HK dollars (about 128 billion U.S. dollars), the Monetary Authority revealed on Friday.

The Monetary Base, comprising Certificates of Indebtedness, government-issued currency notes and coins in circulation, the Aggregate Balance of the banking system and Exchange Fund Bills and Notes issued, amounted to 298.1 billion HK dollars (38 billion U.S. dollars).

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From: Financial Times By Richard McGregor in Beijing

China’s new sovereign fund may extend its provisional investment mandate to finance the overseas expansion plans of some of the country’s largest state enterprises, a senior government official said Wednesday.

Li Rongrong, the chairman of the State Assets Supervision and Administration Commission, which oversees 155 large state companies, said Wednesday he had had discussions with the fund about joint financing of overseas investments.

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Chinese investors have showed great enthusiasm to invest in the nation’s first overseas equities fund, the China Securities Journal reported on Thursday.

China Southern Fund Management Co. Ltd. raised more than 15 billion yuan (2 billion U.S. dollars), the scheduled sales scale, when it started subscriptions for its equities QDII (qualified domestic institutional investors) fund on Wednesday.

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From: Financial Times By Geoff Dyer and Jamil Anderlini in Beijing

The long-awaited surge of retail money from China into international financial markets started to become a reality on Wednesday when a Chinese investment management company raised at least Rmb50bn ($6.6bn) for an overseas equity fund in a single day.

China Southern Fund Management opened subscriptions on Wednesday morning. Counting was continuing last night and one industry executive said the total would reach Rmb60bn.

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By Robin Kwong in Hong Kong and Jamil Anderlini in Beijing

China Southern Fund Management will this month become the first Chinese fund house to invest its clients’ money in overseas stocks, as the liberalisation of China’s domestic funds continues.

The company, one of the three biggest fund managers in China by assets, is the first to take advantage of a June decision by Chinese regulators to expand the scope of the Qualified Domestic Institutional Investor (QDII) scheme, which allows capital outflows through banks, brokerages and fund houses.

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From: Financial Times By Jamil Anderlini in Dalian

China’s plan to allow individual investors to buy overseas securities for the first time has not materialised yet because detailed rules are still being drafted, the country’s main stock regulator said on Thursday.

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