Specialised Investment Fund with QFII quota launched in Luxembourg
Stockholm-headquartered East Capital has launched the East Capital China A-Shares Fund to invest in the renminbi Mainland Chinese capital markets. The fund is listed on the Luxembourg Stock Exchange.
The fund is a Specialised Investment Fund (SIF). The principle characteristics of a SIF are the lack of constraints on the type of assets in which it can invest and a lighter supervisory regime.
Since it may invest in any type of assets, the SIF is suitable for establishing anything from a traditional securities or money market fund via real-estate, hedge, private equity funds, through passion investment funds. The SIF must have active portfolio management.
With the QFII, Chinese authorities offered an investment opportunity for foreign investors to invest on the stock exchanges of Shanghai and Shenzhen. In September 2013, the Luxembourg Stock Exchange and the Shenzhen Stock Exchange signed an MoU. The two signatories agreed to optimise the exchange of information and to work closely together to develop the listing of financial instruments.