RETAIL FUNDS | Cesar Tordesillas, China

HSBC small-mid cap raises 329M in China

HSBC Jintrust Small-Mid Cap Equity Fund raised approximately US$329 million during the initial public offering in mainland China.

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

"Nine new open-ended actively managed equity and balanced funds were launched in the fourth quarter in mainland China as of 30 November 2009, with an average subscription amount of RMB1.98 billion (US$289.9 million). The amount raised by the Fund is higher than that of similar products in the first half of the year. The increase reflects a gradual recovery in market confidence, and the size of our Fund indicates a strong interest from local investors in small to medium-cap stocks," he added.

The Fund has a high equity weighting of 85 to 95 percent in small to medium-cap stocks, the highest level currently permitted by regulation. These include the stocks listed on the recently launched Growth Enterprise Market in mainland China.

Leo Cai, fund manager for the HSBC Jintrust Small-Mid Cap Equity Fund, said: "Apart from domestic consumption, we see value from electronics and textiles, which have benefited from the export recovery. Energy-saving and environmental protection businesses also look attractive. Riding on the market recovery that favours small-cap stocks, we will use a more active strategy to invest in the stocks with high growth potential and will strive to achieve additional returns for our investors."

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