RETAIL FUNDS | Cesar Tordesillas, China

HSBC Jinstrust raises $426M with large cap equity

HSBC Jintrust's Large Cap Equity Fund raised US$426 million during the initial public offering period in mainland China from 18 May to 19 June 2009.

Jointly managed by Tom Lin, Chief Investment Officer, and Ally Wang, Investment Manager, the Fund aims to capture the long-term growth of China’s fast developing economy with an equity weighting of 85 to 95 percent – the highest level currently permitted by regulation.

"This Fund fills a gap in high equity weighting in actively managed funds investing in large-cap stocks in the market. It enhances HSBC Jintrust's product range to meet the different needs of local investors," said Steve Lee, Chief Executive Officer, HSBC Jintrust.

"Twenty-eight new open-ended, actively managed equity and balanced funds have been launched in mainland China so far this year with an average subscription amount of US$321.8 million. This is significantly higher than the amount of similar products launched in all of 2008. We believe the increase reflects a gradual recovery in market confidence and the size of our Fund shows the high level of interest in the large-cap concept," he added.

According to Mr Lin, "We will be interested in the sectors that correlate closely with the restructuring Chinese economy, such as new energy, environmental protection and information technology."

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