New China funds to leverage domestic flotations of overseas-listed tech giants

A man uses his mobile phone in front of a screen showing a logo of Xiaomi at the launch ceremony of the Mi Note in Beijing, January 15, 2015. REUTERS/Jason Lee

Six Chinese mutual funds will be launched as early as next Monday, potentially channeling hundreds of billions of yuan from investors into domestic flotations of overseas-listed Chinese tech giants, the Shanghai Securities News reported on Wednesday.

The six listed open-ended funds (LOF) aim to raise up to 50 billion yuan ($7.8 billion) each from investors with a lock-up period of three years. The funds would be used to participate in strategic placements of China Depositary Receipts (CDRs) to be issued by Chinese tech firms, the newspaper said.

China is encouraging overseas-listed Chinese companies to launch secondary listings in the domestic market through the issuance of CDRs. Domestic investors currently have limited access to some of China’s most prominent tech giants.

Firms planning such issuance include Xiaomi, U.S.-listed Alibaba Group Holding Ltd and JD.com.

The six mutual funds will be distributed through the sales network of the country’s biggest lenders including China Construction Bank, Bank of China, ICBC, and China Merchants Bank, the paper said.

The subscription period for retail investors will be from June 11 to June 15, while institutional investors can subscribe to the funds on June 19, it said.

The funds will be launched by mutual fund houses including China Southern, China AMC, E Fund, Harvest, China Universal and China Merchants Fund.

Also Read:

Chinese live streaming platform Huya raising $165m in US IPO

Xiaomi’s looming $10b IPO has Hong Kong bracing for cash crunch

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.