BlackRock has announced it is to launch a dedicated fund for investing in Chinese shares.
The BlackRock China Flexible Equity fund will invest in both A-Shares, that is shares listed on the Chinese domestic stock market, as well as the shares of Chinese companies listed on other markets.
It will invest in between 30 and 50 stocks.
The fund will be managed by Helen Zhu, head of Chinese equities at BlackRock, and is supported by a team of 10 dedicated China-focused research analysts based in Hong Kong and Shanghai.
Ms Zhu, manager of the BGF China Flexible Equity fund, said: "Chinese equities have been demonstrating higher sector return dispersions, offering active stock pickers a rich investment universe.
"Dynamic, vibrant and now more accessible than ever before, we believe Chinese equities offer investors an attractive opportunity to invest in the transformation of this huge country.
"The fund aims to blend the best opportunities, taking advantage of the nuances in the Chinese equity markets.
"Through flexible allocation, the fund can invest across the full range of market capitalization and Chinese stocks listed globally, whether they are listed in mainland China, Hong Kong, the US or elsewhere.”
Darius McDermott, managing director at Chelsea Financial Services, said the manager of the fund has a strong track record of investing in the Chinese and broader Asian markets and so it makes sense for them to run a dedicated China fund.
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david.thorpe@ft.com
