China Universal, one of the largest Chinese asset management firms, is apparently setting its sights on European money as bond yields in the region continue to remain low.
According to International Adviser, the firm has created a Luxembourg-based SICAV and is now set to launch several UCITS funds aimed at the European investor, with the first being RQFII bond fund which will invest mainly in Chinese domestic bonds available through the domestic inter-bank bond market.
Li Wen, China Universal Asset’s chairman, had this to say regarding the move:
“As fixed income returns in developed markets continue to remain low, we believe there will be considerable interest from European institutional investors, family offices and private banks in accessing the Chinese domestic bond market.”
Photo: Justin.li