Chinese investors have shown unabated enthusiasm to invest in the country's second stock-oriented QDII fund.
China AMC, one of China's leading asset management companies, said in a statement that subscriptions received on Thursday, the first day of issue, already exceeded the scheduled limit of four billion US dollars.
The company said it would stop taking subscriptions from Friday even though the subscription period was scheduled to be open until Oct. 26.
The fund, launched in RMB, will invest in selected shares in overseas stock markets, including in the United States, Europe, Japan, Hong Kong and other emerging countries and regions, said the company.
At least 60 percent of the fund will go to equity securities like stocks and about 30 percent will be invested in Hong Kong shares.
Qualified domestic institutional investors (QDIIs) serve to ease the appreciation pressure on the yuan. Designed to help reduce China's excessive liquidity, the QDIIs had long been deterred from overseas investment by China's rebounding stock markets and high investment threshold.
China AMC, with T. Rowe Price Group as its consultant, has appointed more than 40 professionals for its overseas investment.
The T. Rowe Price Group, one of the largest US independent asset management companies, manages about 380 billion US dollars of assets.
The first stock-oriented QDII fund, launched by the China Southern Fund Management Co., Ltd. on Sept. 12, raised almost 50 billion yuan, far beyond its scheduled limit of 15 billion yuan.
China might experience a QDII fund sales peak as China AMC, Harvest Fund Management and China International Fund Management launch QDII products and other fund firms receive launch approval.
(Xinhua News Agency September 28, 2007)
