Fidelity International said on Friday it had got Chinese regulatory approval to sell a Hong Kong bond fund to mainland Chinese investors under a cross-border fund investment scheme.
JPMorgan Asset Management also got the green light for a product under the Mutual Recognition of Funds (MRF) scheme.
The approvals were given by China’s securities regulator on the same day China’s central bank moved to rein in the fast-rising yuan by encouraging dollar buying in the forward market.
Approving outbound products could guide fresh Chinese money overseas, potentially easing appreciation pressure on the yuan.
It was not immediately clear if the fund approvals were also intended to slow the yuan’s appreciation, but Chinese regulators have used outbound investment quotas in the past to control capital flows and manage forex market expectations.
Fidelity International said on Friday that the regulatory nod to sell the Fidelity Global Investment Fund – Hong Kong Bond Fund in China would offer a new vehicle for its Chinese clients to access global markets and diversify their investments.
“With the continued progress of RMB internationalization and the growing appetite among Chinese investors for global asset allocation, cross-border investment is becoming an increasingly important component of household portfolios,” said James Sun, Fidelity International’s China general manager.
JPMorgan Asset Management did not provide details of its product approved under MRF.
The news was first reported by local media, which said four products had been approved under MRF in one batch.
The Chinese currency has strengthened more than 7% against the dollar since April, hurting Chinese exporters.
Reuters
