First Chinese Asset Manager to Serve Inbound and Outbound Investments
HONG KONG, July 7 /Xinhua-PRNewswire/ -- China Southern Fund Management Co. Limited ("China Southern") and Oriental Patron Financial Group ("Oriental Patron") were given the go ahead by the China Securities Regulatory Commission ("CSRC") to set up an asset management Joint Venture ("JV") in Hong Kong. The new company, which will be 70% and 30% owned by China Southern and Oriental Patron respectively, represents the first step made by the Chinese asset management sector in expanding business into the international markets.
The new company, CSOP Asset Management Limited ("CSOP"), will serve investors as the gateway for cross-border investments flows into and out of China. For inbound flow, CSOP looks to advise or partner with international investments into China by leveraging its local expertise. For outbound flow, CSOP is keen to introduce overseas investment opportunities suitable to domestic Chinese institutional and retail investors.
The CSOP board will have representatives, all boasting financial expertise, from the two partner companies, and the management team will comprise investment veterans from Wall Street, financial experts from Hong Kong and fund management professionals from mainland China. Leveraging Hong Kong’s strategic location, CSOP’s investment team will have direct and timely access to in-depth information to facilitate analysis of investment trends in the mainland and international markets.
At the start, CSOP will conduct asset management business in Hong Kong including managing the investment portfolio in Hong Kong listed securities for China Southern’s QDII fund, namely China Southern Global Dynamic Allocation Fund ("The Fund"). The Fund was approved by CSRC in September 2007 and is the first QDII equity fund launched in China, raising RMB30 billion at the initial stage, with a quota of US$5billion. CSOP also plans to manage a number of public and private funds including equity funds, fixed income funds, hybrid funds and fund of funds; alternative investments and private equity.
Mr. Liangyu Gao, CEO of China Southern and Chairman of CSOP, said: "In its announcement on May 4, CSRC laid down the development blueprint for the country’s fund management industry, calling on enterprises to go global. China Southern is honored to be the first Chinese asset manager given the approval by CSRC to go overseas. For three decades now, the Chinese economy has grown robustly allowing Chinese citizens to build up considerable wealth looking for returns from investment, and the challenge fund managers face today is how to help Chinese investors manage their hard-earned money in fast globalizing financial markets.
To help the Chinese people grow wealth and minimize risks from relying on a single investment market, we see the need to expand overseas and look worldwide for more investment opportunities. We are grateful for the support from CSRC and the Securities and Futures Commission ("SFC") of Hong Kong. We will diligently observe the laws and regulations in Hong Kong and seek to attract talents from inside the country and abroad to help us fully realise our professional advantages and become a unique global asset management company. "
Mr. Gao said China Southern was glad to partner with Oriental Patron which has profound knowledge on the regulatory environment and rich operational experience in different international financial markets as well as thorough understanding of the PRC market and Chinese enterprises.
Mr. Gaobo Zhang, Partner and CEO of Oriental Patron, said: "CSOP is born in the cradle of CEPA in the financial sector and the fruit of hard work of the Hong Kong government, in particular SFC. We are excited to be working with China Southern, which has long been regarded as a provider of innovative products in the course of development of the PRC fund management sector. We believe our cooperation will lead the sector in its advance into the global financial arena."
Dr. Huifeng Chang, CEO of CSOP, said: "CSOP will serve as a bridge between investment platforms in mainland China and overseas. We look forward to working with every foreign investor seeking a local Chinese partner and vice verse. We are a Chinese firm of international standing and upholding the highest international standards." Before he joined CSOP, Dr. Chang had spent eight years at Citigroup’s headquarters in New York where he gained extensive experience in risk management, equity proprietary investments and derivatives sales.
About China Southern Fund Management Co. Limited
China Southern, founded in 1998, was one of the first CSRC-approved fund management companies in China. Currently one of the largest fund management companies in the country, China Southern is managing assets surpassing RMB200 billion. It launched the first PRC QDII equity fund for overseas investment in the fall of 2007, which has been the top performer among similar funds.
About Oriental Patron Financial Group
Founded in 1993 in Hong Kong, Oriental Patron is an integrated financial services enterprise currently with consolidated assets worth over HK$10 billion. It has assisted more than 100 mainland China and overseas companies in raising funds totaling HK$300 billion. The cooperation between Oriental Patron and China Southern was conducted through Oriental Patron Financial Group’s subsidiary OP Financial Investments Limited ("OP Fin Inv"), which is listed on the Main Board of HKEx under the stock code of 1140.
CEPA stands for "Mainland and Hong Kong Closer Economic Partnership Arrangement," an umbrella agreement signed in 2001 between Hong Kong and mainland China.
Media Enquiries:
Strategic Financial Relations Limited
Iris Lee or Keris Leung or Ivis Tsang
Tel: +852-2864-4829 or +852-2864-4863 or +852-2114-4990
Fax: +852-2804-2789 or +852-2527-1196
Email: iris.lee@sprg.com.hk or keris.leung@sprg.com.hk or
ivis.tsang@sprg.com.hk
