CIFM to launch QDLP in pilot program
China International Fund Management, a joint venture between JPMorgan Asset Management and Shanghai International Trust, has been approved to raise yuan-denominated funds in China for investment in overseas markets.
CIFM has been given a 100m yuan ($16.1m) quota under the pilot qualified domestic limited partner (QDLP) scheme. The firm’s first QDLP product will invest in an overseas hedge fund that has multi-asset investment capabilities globally.
Shanghai Daily, August 6
CSRC to appoint new deputy chairman
The CSRC will appoint Li Chao as its deputy chairman. Li is currently a deputy head of the State Administration of Foreign Exchange under the People’s Bank of China, in charge of policy drafting and “hot money management”. Li used to work for the CSRC before he moved to the central bank.
Finance.sohu.com, August 5
More than 60% of mutual funds devalued in July
In July, the net asset value of 63% of mutual funds for sale in China decreased. Values of equity funds dropped an avearage of 14.6%, blend funds were down 10.4% and bond funds fell 0.6%.
In other categories, the net asset value of QDII funds slumped 5.1% and gold ETFs were down 7.7%.
The funds that increased in value were money market funds, up 0.26%, and closed-end bond funds, up 1.39%.
Caixin, August 5
Exchanges limit short selling
Shanghai and Shenzhen bourses curbed short selling by ruling that short sellers can only cover their positions the next day after selling. Short sellers used to be allowed to cover their positions within the same day. Multiple brokerages announced a halt in lending stocks to short sellers the day after the new rule came into force.
Caixin, August 4
Equity funds to rename for not meeting new allocation requirement
More than 100 equity funds must now call themselves “blend funds” because they do not meet the new stock allocation requirement. The lower limit of equity allocation is marked up to 80% from 60%, according to a new regulation on public securities to be effective August 8.
So far more than 100 equity funds fall short of the requirement, according to data provider Wind. Many funds have already changed their names. Out of the 2100 mutual funds distributed in China, more than 500 are equity funds and around 800 blend funds.
Security Daily, August 3
China’s trust assets top 15trn yuan
By the end of Q2, China’s trust assets grew 27% year-on-year to 15. 9trn yuan ($2.6trn), according to the China Trustee Association. Trust companies all together invested 1.4trn yuan, or 9.5% of their combined assets, into equities by the end of Q2, up from 5.8% at the end of the previous quarter.
Caixin, August 3