By Ma Yurong

GUANGZHOU (Fund China) - October 9, Harvest Overseas Chinese Equity Fund has been approved by the China Securities Regulatory Commission, the People’s Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, China Bank of Communications, China’s Postal Savings, China Merchants Bank, the major banks and brokerage outlets available for 5,000 yuan from the sale. Harvest Overseas Chinese Equity Fund also formally approved a four billion US dollars to raise the level of the first, approximately 30 billion yuan. According to report, recently issued several QDII investing in the Hong Kong stock market to increase the proportion of investment in Hong Kong shares ceiling are: Harvest Overseas Chinese Equity Fund is 100%, the first China International Fund QDII product is 50%, Southern Select Configuration Global Fund is 40%, China Selection AMC Global Fund is 30%.

Harvest Overseas Chinese Equity Fund will mainly invest in Hong Kong equities in Singapore and the United States, and the income of their primary business listed at least 50% of China’s listed companies. Overseas Chinese Equity Fund Harvest Fund Managers, Dr. Li Kai said, their product positioning in the Hong Kong stock and in the United States, Singapore-listed Chinese companies, including the Hong Kong market in their portfolio simulation occupy a higher proportion. As for the investment process, in accordance with the contract provisions, the bottom-up investment strategy to select individual stocks based, top-down asset allocation, supplemented by methods. In the investment process, the various market factors affect different, the Hong Kong market and the international market-related degrees higher maturity, they will pay close attention to changes in the economy and the impact of the United States Subordinated Debt. Moreover, the overseas Chinese shares mainly by the financial, energy, telecommunications blue chips pose these stocks in overseas markets in the wake of its almost only half of the A-share market, with high investment value.

Harvest Overseas Chinese Equity Fund will mainly invest in Hong Kong equities in Singapore and the United States, and the income of their primary business listed at least 50% of China’s listed companies. Overseas Chinese Equity Fund Harvest Fund Managers, said Dr. Kai Li, their product positioning in the Hong Kong stock and in the United States, Singapore-listed Chinese companies, including the Hong Kong market in their portfolio simulation occupy a higher proportion. As for the investment process, in accordance with the contract provisions, the bottom-up investment strategy to select individual stocks based, top-down asset allocation, supplemented by methods. In the investment process, the various market factors affect different, the Hong Kong market and the international market-related degrees higher maturity, they will pay close attention to changes in the economy and the impact of the United States Subordinated Debt. Moreover, the overseas Chinese shares mainly by the financial, energy, telecommunications blue chips pose these stocks in overseas markets in the wake of its almost only half of the A-share market, with high investment value.

According to statistics, China AMC Global Selection Fund on September 27 scenes of popular subscription, just a morning, the company planned 30 billion size has been sold out, the scale of the day to raise more than 60 billion, Southern Select Configuration Global Fund size raised on the first day of nearly 50 billion yuan on a larger scale. According to industry sources, several fund holders QDII mainly through retail banks, the ratio of placement, the holder is basically mostly individual investors, with the A-share Fund is not different in essence.

However, individual investors subscribe for the QDII enthusiastic status quo, we can not help thinking of targeting the personal finance market, “Hong Kong equities through train.” August 20, the State Administration of Foreign Exchange announced later known as a “Hong Kong equities through train” New Deal: Allow residents in the purchase of unlimited foreign investment in Hong Kong shares, the designated branches of the Bank of China in Tianjin to pilot qualifications of the business.

To this end, the reporter calls the Guoyuan Asset Management (Hong Kong) Ltd Co. Yu Kun on the telephone, he said to reporters, before have not “Hong Kong equities through train”, the domestic investors to participate in the international market, only through the purchase of QDII, now can enroll in the “Hong Kong equities through train”. But “Hong Kong equities through train” there are still some technical issues to be resolved, the specific operation is still not implemented properly, or more recently the Hong Kong stock market to guard against risk, we must strengthen the management accounts. The two channel “to Hong Kong” and “Hong Kong equities through train” with the Hong Kong equities portfolio included the QDII relations, he said pictograms analogy is like buying funds or domestic investors to buy their shares, is a natural competition for the funding pattern, which is favored by the way, investors will depend on the risk preference.

Meanwhile, the market also voice worries incessantly, “in the anti-risk ability of small and medium investors, particularly weak”, “Hong Kong equities through train” may experience traps worthy of attention. After the announcement of this program, Hong Kong’s Hang Seng China Enterprises Index of the week up nearly 40%, the industry worried investors from abroad to take over the “queuing”, then repeat the mistakes of B-shares. EMC chief fund securities analysts said that, individual investors are not familiar with the market, through smaller risk the QDII to share Hong Kong stock proceeds was more wisely.

We noted that the researcher Professor Ba Shusong, should appeal to small and medium investors, in addition to opening, the opening of the main channel is also, after all the research capability, risk control capabilities relatively strong, but also commitment to domestic investors and information and risk-risk education this suggested that the function.

In fact, the QDII issue of good expected, the recent strong performance of the Hong Kong market, in this context, relatively familiar with the investors, most of China’s listed companies on the Hong Kong market, the most obvious benefit. China AMC Global Selection Fund fund managers Yang Changyan believed that some international financial group that the Asia-Pacific region and even the capital market will become an international capital “safe haven.” Hong Kong and the Mainland market participants different structures, the formation of the investment philosophy and investment preferences are different, and for the international financial market in Hong Kong, led by the Corporate Body fundamental importance of corporate transparency, corporate governance, and the types of companies with global attention to the valuation, therefore need more investment cautious.

Copyright Fund China 2008.

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