The Haitong Global RMB Fixed Income Fund is to be launched by Hai Tong Asset Management, a wholly owned subsidiary of Hai Tong (HK) Financial Holdings, and will be open for investment between 11 August and 30 August this year.
A statement from the SFC said it authorised the sale of the fund after working closely with a number of industry participants to enable the introduction of RMB-denominated investment products. The regulator said its wider aim was to develop Hong Kong into an offshore RMB centre.
Hai Tong’s fund will aim to achieve long term capital growth through investing in a portfolio consisting primarily of RMB denominated fixed rate or floating rate debt instruments issued or distributed outside mainland China. These instruments may include RMB denominated bonds issued by a variety of issuers such as government agencies, banks and corporations.
The fund may also invest in other RMB denominated deposits issued outside mainland China, such as bank certificates of deposit and negotiated term deposits with banks, and other instruments such as convertible bonds, commercial papers and short term bills and notes, also issued outside mainland China.
Minimum investment in the fund will be RMB10,000, with an initial charge of up to 3% and an annual management fee of 1% per annum.
Alexa Lam, the SFC’s deputy CEO and executive director of policy, China and investment products said: “Hong Kong has a unique role in China’s internationalisation of its currency. As the RMB becomes more popular and widely held outside the Mainland, demand for RMB-denominated investment and financial products will grow. Hong Kong’s role is to make these products available and manage their risks.”