Aberdeen launches offshore China equity fund

Aberdeen launches offshore China equity fund

Aberdeen Asset Management has launched an offshore fund investing solely in the Chinese A share market.

Aberdeen Global - China A Share Equity fund will be managed by Aberdeen’s Asian equities team, which is headed up by Hugh Young.

It will invest in A shares after the market was opened up to international asset managers last year, making use of the RMB qualified institutional investor licence that was awarded to Aberdeen in 2014, which gives the firm permission to buy Chinese shares.

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Aberdeen said the fund would invest in between 25 and 30 stocks, out of an investable universe of 2000 firms, looking to buy the “most high quality companies with compelling, long term prospects”.

The China A share index rose by 46.9 per cent, spurred on by a rush of international investors flooding into the market.

However, the new Luxembourg-domiciled Aberdeen fund will only initially be available to European investors who invest a minimum of $1m (£670,000).