Aberdeen awarded RQFII licence
Aberdeen Asset Management (Aberdeen) has been awarded with an RGFII licence and is now planning to launch a China A shares fund, the Scottish asset management group confirmed.
Aberdeen applied for RMB600 million investment quota and expects the actual sum to be confirmed by SAFE in November. Once 80% of the allocation is invested, it may apply for an additional quota.
According to Aberdeen, the launch of an A-share fund represents a gradual shift in the company’s view of Chinese equities.
Hugh Young, manager director of Aberdeen Asset Management Asia Managing Director, comments:
“Although China is a huge and exciting market, we are instinctively cautious and have shunned stocks that do not protect minorities or whose structures do not give investors proper legal ownership of the underlying assets. In the past it has been tough to find quality companies we like. That has been changing gradually and we could now pull together a portfolio of 20-25 stocks with which we would be comfortable, and with low cross-over with our existing fund.”
Since 1997 it has managed a China equity fund that is characterised by its big weighting in Hong Kong and other non-mainland domiciled stocks, however, the firm now sees growing potential in Chinese mainland companies