GUANGZHOU (Fund China) – Although the negative effects caused by the subprime lending crisis still exist, we can see that the prices of global financial asset are at a stage low point. So, there are many overseas investment opportunities.

However, there are some differences between domestic investment and foreign investment. First, A-stock market doesn’t have Short mechanism and Hedging and the international markets have a wide variety of hedging instruments. Second, QDII funds can use derivatives such as forward transactions to hedge the risk of RMB appreciation. However, RMB appreciation is mainly relative to US dollar. In fact, compared to some of the international monetary, such as the Yen and the Euro, the RMB has been in a relative devaluation state. QDII products can use different currencies asset allocation to scatter the risk of RMB appreciation and they may even bring additional revenue to the QDII funds. Third, QDII funds investments focus on the whole world, including the developed countries, emerging markets, Western Europe market, North American market, Eastern Europe market, as well as the Middle East market and South Asia marker and other markets.

Therefore, it is recommended that investors pay attention to Yinhua Global Core Enhanced Fund.

Copyright Fund China 2009.

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