HSBC Global Asset Management has launched the HGIF China A Fund for investors seeking exposure to the China A share equity market.
The actively-managed fund is designed to capture the long-term growth opportunities in China A-shares, offering access to high-quality companies with sustainable business models and at attractive valuations. The fund offers a high-conviction portfolio of 40-80 stocks with a large-cap bias, built upon a highly disciplined, bottom-up investment process designed to drive long-term alpha.
The China-focused equity fund is co-managed by HSBC Global Asset Management’s dedicated Jintrust team in Shanghai and the offshore team in Hong Kong. Backed by strong local knowledge and on-the-ground expertise, the Jintrust team currently manages over USD2.1 billion in onshore equities as of June 2019.
Mandy Chan, Head of China and HK Equities and the lead manager of the HGIF China A Fund, says: “China’s onshore equities have a market capitalisation of USD7.8 trillion and over 3,500 listed companies, many of which offer unique investment opportunities that can’t be accessed elsewhere. The depth and breadth of the onshore equity market as well as the increased allocation in key benchmarks have made the asset class impossible for overseas investors to ignore.
“The HGIF China A fund offers global investors the opportunity to gain exposure to China’s economic transformation and some of the most exciting structural stories in the ‘New China’ sectors – such as healthcare, consumer products and technology. Bolstered by supportive government policies, these companies have achieved better growth than the overall market in recent years, beating out “old economy” rivals.
“The launch is a direct response to client demand and underpins our commitment to connecting investors with the best investment opportunities around the world.”
HSBC Global Asset Management has a strong track record in managing Chinese assets since 1992 and currently manages USD5.7 billion in onshore and offshore Chinese equities as of June 2019. The HSBC Group has been active in China for over 150 years and has the largest network amongst foreign banks in the country.
