BlackRock is intending to launch more Chinese equity products, including an unconstrained strategy, as it bids to take advantage of plans to increase access to the country’s stock exchanges.
The Shenzhen Stock Exchange will be opened up to foreign investors later this year, allowing international investors further access to China A-shares following the launch of the Shanghai-Hong Kong Stock Connect scheme in 2014.
Though foreign investors have been slow to participate in the latter scheme, BlackRock head of Chinese equities Helen Zhu said the firm was looking at launching at least two new funds, and incorporating more A-shares into existing China and global equity strategies.
Ms Zhu said the firm is developing an unconstrained fund for Chinese equities, subject to regulatory approval.
She also said BlackRock could pursue another absolute return fund for the region, though this is a long-term goal rather than an imminent launch.
On the unconstrained equity fund, she added: “It will be a flexible concept. It means whether it’s Hong Kong listed or A-shares, we can put the money wherever we see the opportunity, versus a more benchmark-aware fund.”
Jean-Marc Routier, a product strategist at BlackRock, said: “We don’t want to restrict ourselves to A-shares. The new fund [will tap] the new way of investing in China – giving yourself the most tools available with access to all markets.”
