E Fund wants to help connect investors to opportunities in ‘new markets’

Chinese asset manager E Fund is seeking to facilitate more cross-border investment at a time of tight mainland capital controls and a gradual liberalisation of financial markets.

Chen Hongchu, the chief international investment officer of E Fund, says both domestic Chinese investors and foreign asset managers can benefit from its services.

“On the one hand, guidance is needed for mainland institutions and funds to test the waters of international markets. On the other, Chinese investment opportunities need to be promoted to the world,” said Chen. “From this point of view, we are more like a service-oriented company that serves customers to better adapt to a whole new market.”

E Fund, with US$179 billion in assets under management, ranks as one of the largest asset managers in China. The company provides services in mutual funds for qualified domestic institutional investors (QDII) in China, and qualified foreign institutional investors (QFII) and renminbi qualified (RQFII) global investors.

“The offshore units of Chinese asset managers can enjoy unique benefits by being set up in Hong Kong and backed by the mainland,” Chen said. “However being able to gain market trust and recognition is a common threshold to all Chinese asset managers.”

China is a capital excessive country, but huge savings are trapped inside the nation because of the government’s policy on capital outflows.