- Firm says the fund received ‘crazy demand’ on Monday
- QDII bond funds more than tripled to 13.55 bln yuan: Z-Ben
China Asset Management Co., the nation’s second-biggest fund company, completed raising money for its new overseas bond fund in one day as a weakening yuan boosts local demand for dollar assets.
The fund, which focuses on notes issued by companies in the Greater China region, received “crazy demand” from investors on the first day of sale on Monday, the firm said in an e-mailed statement Tuesday. A press officer at China Asset didn’t immediately reply to an e-mailed query from Bloomberg News about how much money it has raised for the fund, which has been set up through the qualified domestic institutional investor scheme.
Goldman Sachs Group Inc. estimated that China saw $49 billion worth of foreign-exchange outflows in June compared with $25 billion in May, as the yuan’s depreciation prompted local investors to chase the rising value of overseas assets. The amount of assets managed by Chinese overseas fixed-income funds through the QDII scheme more than tripled to 13.55 billion yuan ($2 billion) at the end of the second quarter from 3.9 billion six months earlier, according to data compiled by Shanghai-based research firm Z-Ben Advisors.
The fund is denominated in Chinese yuan and U.S. dollars, according to a statement on July 20. The Chinese currency has depreciated 2.8 percent against the dollar so far this year.
— With assistance by Yuling Yang, Wenwen Zhang, and Judy Chen