Under the new rules, the draft says, the upward limit of investment in the QFII program for an overseas institute will be increased to 1 billion U.S. dollars from the previous 800 million U.S. dollars, the State Administration of Foreign Exchange (SAFE) said.
A mutual fund is one of the safest and best ways to invest than any other way. It is a firm that is professionally managed using investors money to invest in bonds, stocks, short-term money instruments and other such securities. The money manager of a mutual fund, the fund manager (also known as the portfolio manager) is responsible for losses/gains, collects the interest income or dividend. These will then passed to the individual investors. China mutual funds are one of the hottest funds today. The GDP growth rate of china is around 10% a year and is matched by the growth of Chinese mutual funds. The current lack of economic growth in United States has scared off a lot of investors and other options are beginning to open up. China’s foreign trade has grown to such as extent that it is now one of the most important economy in the world. It has been a deadly competitor to other Asian export countries such Singapore, Malaysia and South Korea…
QFII is a Chinese program launched in 2002 that allows licensed foreign investors to buy and sell yuan-denominated A shares in the Chinese mainland stock exchanges in Shanghai and Shenzhen. As of April this year, 79 QFIIs had registered with the China Securities Regulatory Commission.
Mutual funds and exchange-traded funds are the only practical way you can get unfiltered access to China’s boom. Since China is a hot item with U.S. investors, investment managers are rolling out new funds and ETFs to capitalize on the trend.
To show how a little bit of effort can reveal significant differences, let’s look at three China funds: (FXI) (by Barclays Global Investors), (GXC) (by State Street Global Advisors) and (CAF) (by Morgan Stanley Institutional).
All three come up as China funds when you search on popular sites such as ETFconnect. Simply reading the ETFconnect product [...]
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