Quick Take: CDR Funds Fall Short of Investment Contribution Cap
Individual investors have placed about 70 billion yuan ($10.8 billion) in six government-appointed equity funds for the purchase of Chinese depositary receipts (CDRs). This fell short of what they were allowed to raise, Caixin learned from multiple sources.
The funds are expected to be officially launched on Thursday after going through regulatory checks, which are currently underway. Private investors were able to place their money in the six funds from June 11 to Friday, while institutional investors were able to do so on Monday.
The China Securities Regulatory Commission (CSRC) put a 20 billion yuan cap on the total amount that each fund can raise from private investors on June 10.
The regulator encouraged the six funds to attract institutional investors such as pension funds. The funds have created accounts for institutional investors, Caixin learned; however, it’s unclear at the moment how much capital that institutional investors have placed in the funds.
Earlier this year, Chinese regulators changed their attitude toward the domestic listing of Chinese tech firms and said they welcome overseas-listed tech titans to come back home to domestic bourses via CDRs in an attempt to make them available to Chinese investors.
After Chinese smartphone-maker Xiaomi decided to postpone its issuance of CDRs on the Chinese mainland market — which would have been the receipts’ debut — all eyes are on how the multibillion-yuan funds will be used when the first CDRs are issued.
The six fund managers are Shenzhen-based China Southern Asset Management Co. Ltd., Beijing-based China Asset Management Co. Ltd., Guangzhou-based E Fund Management Co. Ltd., Beijing-based Harvest Fund Management Co. Ltd., Shanghai-based Huitianfu Fund Management Ltd., and China Merchants Fund Management Co. Ltd., a subsidiary of China Merchants Bank.
Contact reporter Pan Che (email@example.com)
To read more about Chinese depositary receipts, click here
Dec 11 17:47
Dec 11 14:42
Dec 11 14:53
Dec 11 14:48
Dec 11 14:02
Dec 11 13:41
Dec 11 12:00
Dec 11 11:38
Dec 11 07:23
Dec 11 07:21
Dec 11 05:57
Dec 11 05:31
- 1JD.com’s Richard Liu Steps Down From Key Positions, but Retains Control
- 2Photo Essay: Chinese Farming in Mozambique
- 3In Depth: How the Queen of Gree Won, Again
- 4Chipmaker Secures Patent Deals as China Seeks to Break Foreign Tech Dependence
- 5Another Local Government Financing Vehicle Fails to Pay Bond Interest
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas