BOCHK Asset Management launches ‘Greater Bay Area’ bond fund, expects China to attract US$150 billion in foreign investment
- Investment company maintains positive outlook for China’s bond market as it launches the BOCHK All Weather Greater Bay Area Strategy Fund
- Region has a higher GDP growth rate than San Francisco Bay Area and Tokyo Bay Area, says CEO
The asset management unit of Bank of China (Hong Kong) on Tuesday launched a bond fund for investors in Hong Kong and Macau focused on the region covered by Beijing’s “Greater Bay Area” initiative. It said it expected US$150 billion in foreign capital to flow into mainland China’s bond market over the next 18 months.
“This is the first investment fund specifically focused on bonds in the Greater Bay Area, which at the moment has a higher GDP growth rate than that of the San Francisco Bay Area and the Tokyo Bay Area,” said Shen Hua, the chief executive of BOCHK Asset Management.
“The fund will build on Hong Kong’s strength in the financial sector, while drawing on the developed financial networks in Shenzhen and Guangzhou, which is why we think it will do well,” he added.
The company did not disclose its target fund raise, and only said the offering will be available from Tuesday until April 8, after which it will be traded as an open-ended fund.
The BOCHK All Weather Greater Bay Area Strategy Fund will mainly invest in bonds issued by government bodies and companies registered and active in the Greater Bay Area, the Chinese government’s scheme to link the cities of Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing into an integrated economic and business hub.
