HONG KONG Dec 18 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
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)