HSBC China fund mulls worldwide expansion

15 November 2011: HSBC's China fund venture is planning to broaden its product line over the next five years to meet rising demand for cross-boarder investment. Betting internationalisation would be a new engine of growth for the country's stagnant mutual funds industry. China's securities regulator may ease rules on overseas investment funds, allowing HSBC Jintrust to launch its first product under the Qualified Domestic Institutional Investor (QDII) scheme as early as next year.

Growth of China's mutual funds industry has stalled during the past three years as investors shift to rival products amid stock market volatility, intensifying a battle among the sector's more than 60 players to defend market share. Despite the headwind, China's fund industry will continue to witness rapid growth over the long term as Beijing gradually liberalises the financial market and encourage cross-border investment, Lee said, forecasting that the number of mutual fund units in China could triple to 6 trillion in five years.

Source: Economic Times