Heptagon Capital, a London-based asset manager, has partnered with China-based Harvest Fund Management to launch a new actively managed fund that offers European investors access to Chinese stocks.
Dubbed as the Harvest China A Shares Equity Fund, the UCITS compliant fund will buy the domestically traded so-called A-shares of Chinese companies in Chinese yuan, reported The Wall Street Journal.
The launch of the Heptagon fund, which gives Europeans access to Chinese stocks traded on the Shanghai and Shenzhen exchanges, follows the introduction of new measures by China to make its domestic stock market more accessible.
The new fund is the first actively managed UCITS fund for A-shares with daily liquidity.
The partnership will allow Harvest Fund Management to attract international investors to China.
Warwick Ryan, managing director at Heptagon Capital, said: "If you really want to tap into the domestic consumption theme in the Chinese market, then you need to be buying the A-shares. A-shares have a higher exposure to the consumer services, consumer goods, health care and industrials sectors than the H-share market."
Peng Choy, CEO at Harvest Global Investments unit in Hong Kong, said: "We have been at the vanguard of efforts to allow international investors to gain exposure to the economic opportunities in China."
Founded in 2005, Heptagon now manages $9 billion in assets under management, while Harvest, founded in 1999, manages about $50 billion under management.