Fund China

From: “Financial” network version of the magazine
Compiler: http://www.fundcn.org

China Securities Regulatory Commission on June 20 announced the “qualified foreign institutional investors in the territory of the securities investment management pilot scheme” (hereinafter referred to trial approach) and the notification, designated a comprehensive securities companies and fund management in the territory of qualified institutional investors (Qualified Domest ic Institutiona lInvestor. QDII) status to invest in overseas markets and operating specifications.

Pilot scheme in China on April 30 SFC Chairman of the 27th session through the office, from the provisions of a series of QDII relevant operational norms, will be July 5 onwards.

Since the 2006 introduction of QDII policies, already has banks, insurance agencies QDII investment norms issued. By contrast, quite the strength of investment securities companies and fund management companies among only a handful of institutions to pilot the form of QDII attempt.

Than the former pilot, the Commission promulgated a move to standardize the amount of foreign exchange management, product design and fund-raising methods. investment operations, and other breakthroughs. Pilot scheme is tantamount to the starting sounded the clarion call. QDII competition in the backward brokerages and fund companies are now beginning to catch up with the accelerated.

Pilot scheme, to apply for a QDII qualified fund management companies need to have the conditions that : net assets of not less than 200 million yuan; The securities investment fund management business up to two years or more; In a recent end of a quarter-scale management of not less than 20 billion yuan or the equivalent in foreign currency assets.

Securities companies need to have the conditions that : the risk control indicators meet the required standards; Net capital of not less than 800 million yuan; net capital and net assets ratio of not less than 70%; asset management business set up a business plan, above; In a recent end of a quarter-scale asset management for not less than two billion yuan or the equivalent in foreign currency assets.

In the amount of foreign exchange, the pilot scheme, the territory of institutional investors should be based on market conditions, Product characteristics of the program to raise a reasonable amount of size limit to the State Administration of Foreign Exchange record. and in accordance with the relevant provisions of the State Administration of Foreign Exchange, going through relevant procedures.

Qualify, the fund management company, through a public sale of shares of the Fund-raising funds, and securities companies can set plans to set up fund-raising methods. At the same standing issued by the relevant notification, the SFC also stipulates that the fund, set plans to be the first to raise the renminbi, U.S. dollars or other major foreign exchange currency denominated monetary collection. This will be the first source of funds by investors to own foreign exchange expansion of the RMB.

In the notice, the Commission on the amount of all types of investment have made detailed provisions. Brokerage firms and fund management companies can invest in the QDII deposits, bonds, and the China Securities Regulatory Commission has signed a bilateral memorandum of understanding on cooperation in supervision of the state or regional securities, Public-fund and the proportion of financial derivative products. The commission also provides for specific markets and corporate investment ceiling.

“From the point of view is provided up to be relatively open, but the implementation will still be more cautious.” Gold Company Asset Management Department, Managing Director Zhu Yong said. “In appreciation of the renminbi is expected under the circumstances, investors right of return QDII products will require a relatively high now is to see how the product designers to weigh these issues. ”

Southern Fund Management Company vice president Xu Ouabin also told reporters that the investment area, The amount of foreign investment restrictions, primarily to diversify investment risk control, Now brokerage firms and fund management companies QDII just take the first step, the need for prudent to accumulate experience.

At present, the market has some of the brokerage firms, fund management companies through various means of QDII business attempt, Some agencies in active preparation, ready for use.

China International Capital Corporation Limited in 2005 to start a separate account in the form of foreign currency assets management services. can be said to be the forerunner of the brokerage firms. CITIC Securities and investment securities brokerages also demonstrates the QDII products of great interest, two brokerages reported product design programs to the SAFE for the amount of information QDII have appeared in the news media.

In the fund management companies, Huaan Fund Management Company as a pilot QDII, In last year launched the first of the leading fund companies QDII products. In addition, the South fund management companies have started preparations for the QDII products and the United States has selected Mellon Financial Group as a partner, will jointly launch QDII products.

Market analysis from the pilot scheme of the situation, a number of brokerage firms and fund management companies can apply to the conditions. But if we take into account the various agencies and the readiness of the market demand for investment, whether in terms of the approval of the SFC issued, or brokerage firms, fund category QDII the introduction of a product, it will be a gradual process of exploration.

Understand various QDII products, not always from the revaluation of the RMB, Chinese financial consciousness and the mainland stock market rising three major background. Three factors are intertwined and that constitutes a product launch QDII momentum has become the test QDII product designers the biggest challenge.

From the past to market various products reflect QDII can sum up mainland investors some typical characteristics, This includes requirements for the high rate of return, investment in a short cycle of concerns over the appreciation of the RMB, the low-exposure and so on.

“Now do QDII or the demand, on the one hand, investors are still holding hands considerable amount of foreign currency assets, hope to preserve and increase the value and spread the risks. “The one who answered said. “Brokerage firms, fund management companies and other organizations active stance is prudent, although the domestic market is better, But some outside investment space, and from their own business development perspective, the significance is even more significant. ”

Xu Xiaosong said Southern Fund Management Company will QDII product development through its own asset management can edge. Although Mellon hired as investment adviser, but Xu Xiaosong stressed that the South Foundation, “we” “All investment decisions are the ones who have the rights in the South in the hands of the Fund.”

Under the pilot scheme, brokerage firms and fund management companies QDII products into the global market (with the China Securities Regulatory Commission supervision of the signing of the bilateral cooperation and understanding Memorandum of countries or regions), but are intended from the individual most familiar with the start of the Hong Kong market.

Gold companies operating in Hong Kong for many years, Hong Kong has its own asset management companies and the integrity of a comprehensive asset management platform.Zhu Yong disclosed that the company plans from the start, the first business to Greater China, and South Korea. India, the countries around China market, the future development of Europe and the United States again.

For Europe and the United States ahead of the investment by local fund investment in the form of realization, is doing fund of funds, or may choose index funds for investment.

But Zhu Yong suggested that FOF has its own set of management methods, The most important point is to do due diligence Fund includes understanding the fund manager’s investment style; reconfigured itself portfolio allocation to be done, If the Fund is a certain size, can negotiate lower management fees. It is not a simple identity to retail investors to cast Fund.

Copyright Fund China 2008.

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