View more on these topics

Bolton’s China fund can invest in A shares

Anthony Bolton’s China special situations trust and Fidelity Investment Managers Hong Kong have received a licence to invest in Chinese mainland A shares.

Fund firms wanting to access the Chinese A-share market have to apply for a qualified foreign institutional investor licence and, once it has been granted, they are given an investment limit.

A Fidelity spokesman confirms it has been given the licence but has not been told what limit has been awarded.

At admission, Fidelity did not have a QFII license. Bol-ton’s China special situations investment trust sought exp-osure to Chinese A shares through indirect investment.

The prospectus of the investment trust hinted it may at some point invest in A shares both directly through the QFII licence and indirectly through other investments, including equity-linked securities, derivatives and collective investment schemes.

China’s stocks are listed as A shares, B shares and H shares. China B shares, which are pay-able in a foreign currency, were originally developed to enable foreign investors access to the Chinese stockmarket. A shares are only for residents of the Chinese mainland. There are more than 10 times the number of A shares than B shares.

The Fidelity China special situations trust has confirmed its proposed C-share issue with an issue price of 100p to deal with the trusts’ current significant premium. Fidelity will issue the shares publicly but give priority to existing shareholders as part of an open offer for subscription and placing.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com