Post by
fireinthehole on Sep 14, 2007 2:01am
China''s first overseas equity fund ....
begins to buy.
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Chinese fund to buy international securities next week
By Chris Oliver
HONG KONG (MarketWatch) -- China's first overseas equities investment fund could initiate buying activities next week, according to analysts. The China Southern Fund, which officially launched Sept 12 and raised 30 billion yuan ($3.99 billion) from mainland Chinese investors earlier this year, should begin buying shares and units of exchange traded funds next week, according to Citigroup equity analyst Lan Xue in Hong Kong. The fund will be allocated one-third towards Hong Kong-listed shares, with the remainder allocated towards exchange-traded funds in emerging and developed markets, according to Xue. "For the Hong Kong portion, we expected the larger market caps will be appealing," Xue said in a research note circulated by email Friday. Xue estimates four to five fund management houses will bring similar equity funds into operation in the near future.