China's E Fund doubles 5 bln yuan quota for A-share ETF
HONG KONG Dec 18 (Reuters) - Asset manager E Fund said it has been given a further 5 billion yuan ($802 million) official quota to invest in China's mainland A-share market via an exchange-traded fund (ETF) denominated in yuan, amid improved sentiment among some global investors who are betting on a recovery in China.
It brings the total quota for E Fund's China Securities Index (CSI) 100 A-share ETF under the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme to 10 billion yuan.
"The strong support from retail and institutional investors results from the market's confidence in the long-run prospect of China's economy," Nathan Lin, managing director of E Fund (Hong Kong) said in a statement.
China introduced the RQFII scheme at the end of 2011 with an initial quota of 20 billion yuan and raised that to 70 billion yuan this year. Chinese media reported that Beijing would add 200 billion yuan to this program.
The sharp rebound in the A-share market during the past two weeks has reignited hopes for a further rally since the growth in the world's second-largest economy seems to have bottomed out.
China shares closed at their highest in more than four months on Monday as investors, encouraged by more signs of reforms to come, added to a surge last week that put onshore markets on course for their first annual gain since 2009.
The risk-on sentiment also drove investors to ETFs tracking A-share market. China Asset Management (Hong Kong) expanded its yuan ETF quota by 5 billion yuan earlier this month as well. ($1 = 6.2350 Chinese yuan) (Reporting by Michelle Chen; Editing by Eric Meijer)