It will be the first mutual fund available in China to focus on the Asia-Pacific ex-Japan region, investing in Australia, South Korea, India and Singapore.
The firm has applied to China’s foreign exchange regulator to obtain an investment quota, which, some sources say, is $5 billion.
Last week, Harvest Fund Management, of which
Investors in China are now allowed to invest a limited amount of money in foreign securities markets through the Qualified Domestic Institutional Investor rule that was announced in April 2006 and expanded this past May to include stocks.
The rule allows investors to invest in foreign securities markets via certain fund management institutions, insurance companies, securities companies and other assets management institutions that have been approved by the
JPMorgan estimates that $90 billion of Chinese money will be invested in global markets over the next year through the Qualified Domestic Institutional Investor rule.