HSBC Securities Services has been appointed as global custodian for the qualified domestic institutional investor (QDII) fund launched by Tianhong Asset Management (Tianhong AM), one of the largest asset management companies in China.
Patrick Wong, head of China business development and client management at HSBC Securities Services, highlighted that Vietnam is a “booming market with great investment potential”.
The QDII fund marks China’s first dedicated mutual fund providing access channel for Chinese domestic investors into the Vietnamese capital market.
The QDII scheme allows China investors through qualified institutions to invest offshore within allowable quotas, HSBC noted.
Tianhong AM’s quota under the scheme is $200 million, according to data from the State Administration of Foreign Exchange dated September 2019.
The QDII fund will invest no less than 80 percent of fund assets in stocks benchmarked against the VN30 Index, HSBC explained.
According to HSBC, this includes the 30 largest stocks listed on the Ho Chi Minh Stock Exchange, and QDII also invests in depositary receipts issued by Vietnamese companies.
Wong commented: “Tianhong AM’s QDII Vietnam fund has paved the way for investors to access the country’s equity fund and we are very delighted to be part of this development.”
“With HSBC’s vast global network, we are positioned to support and connect our clients especially in China to access other frontier and emerging markets in Asia and the world,” Wong added.
