The former Hong Kong head of a mainland fund house has joined private equity firm JD Capital to build out its new wealth management unit, reflecting a rising trend.
GF Fund Management is the second Chinese fund house to receive regulatory approval for an office in London as mainland managers begin to realise their overseas ambitions.
GF International will launch its first exchange-traded fund in Hong Kong this week. The ETF will track the MSCI China A International index, a new benchmark designed for A-share inclusion in global indices.
Hong Kong subsidiaries may have to redesign their RQFII product offerings as a result of upcoming mutual recognition, as they face direct competition with funds offered by their mainland China parent firms.
The Hong Kong subsidiary of China’s sixth largest mutual fund house launched its first RQFII mutual fund, with balanced funds and a segregated accounts business in the pipeline.
Tapping the mainland market is as tough as ever for foreign asset managers, particularly given the current environment, say industry experts.
RQFII fund managers can now offer a more diverse range of products, including segregated accounts, as Chinese authorities ramp up quota handouts.
Nathan Lin is set to join GF International IM as general manager to oversee the business and help get its fledgling RQFII programme off the ground, AsianInvestor understands.
Fund houses expect to launch new and different types of product after CSRC chief vows to raise quotas by Rmb200 billion in response to demand plea from Hong Kong authorities.