HFT Investment Management Co., Ltd.’s fully-owned Hong Kong subsidiary, HFT HK, was granted approval by the Hong Kong Securities and Futures Commission to launch its first renminbi mutual fund, the HFT (HK) China RMB fixed income fund.
The fund will seek to provide its investors with stable capital growth in renminbi terms. It primarily invests in renminbi denominated fixed income instruments and can hold investments in Chinese equities up to 20 percent of the portfolio. With the fund, HFT offers the public access to the Chinese bond market via an experienced Chinese asset manager.
HFT HK was officially established on November 25 2010 and granted the securities advisory and asset management licences by the SFC. HFT HK has been actively expanding into overseas markets by growing its international investor base.
The fund approval followed the RQFII license granted to HFT HK by the China Securities Regulatory Commission (CSRC) on December 212011 and the 1.1 billion renminbi quota granted to HFT HK by China’s State Administration of Foreign Exchange on December 30 2011.
HFT is a joint venture between a Chinese and a European partner and has a vast experience in managing and advising on QFII portfolio’s since 2004.
“Being given the green light to launch our first renminbi mutual fund is another milestone on HFT’s path in becoming a full-fledged international asset management company. This fund perfectly fits in HFTs profile; offering greater China investments to the offshore public,” said Jelle Vervoorn, executive director, HFT HK.
