On September 20th at a product introduction meeting, CCB announced that its QDII product, “JPMorgan Asia Wealth Creation Choice” would be officially issued nationally from September 24th to 28th.  Instead of placement on a pro-rata basis, the product would be available on a first come first served basis.  Investors were reminded that they could start subscription application by advance appointment on September 23rd.  Once the preset volume was filled up, the system would automatically reject further applications.

According to a representative from CCB financial marketing department, “JPMorgan Fleming Asia Wealth Creation Choice” was promoted to cater for market needs and adapted the investment structure of “fund of funds”.  The emphasis would be placed on Asian funds including Australian under JF Asset Management.  The minimum number of funds would be two and the market value at any point of time of any one of the funds should not be greater that 70% of the total asset value of the funds.  The NAV of the fund would be disclosed once every week.  The fund could be redeemed once every week hence increasing the liquidity of the QDII product of the bank.

In addition, the product introduces the investment strategy of “total return” which has been widely adapted by overseas markets and proven successful.  The most special of it is that no benchmark is set.  Irrespective of market performance, the manager can take appropriate strategies of either increasing the long positions or switching to more cash assets in order to avoid risks without sacrificing return.

Information reveals that this will be the first QDII product concentrating its investments in the Asia markets.  According to the overseas manager, JF Asset Management, the Asian markets are, among others, the most advantageous and can be summarised as “One base, two advantages and three growth engines”.  The economic growth of Asia is phenomenal.  Its double digit growth rate outperforms developed markets in Europe and US providing a sound base for investment.  The two advantages include the complementary nature of the Asian economies, thus providing a diversified investment opportunity.  Overseas funding keeps on injecting to their stock markets thus strengthening their currencies and minimising the risks of the RMB.  Besides, the young demographic structure, huge savings and rapid urbanisation became the three engines to provide unlimited power to sustain continuous growth.

According to the regulations of China Banking Regulatory Commission, QDII product can invest in funds of Hong Kong market and no limit is set for the investment proportion.  Funds available in Hong Kong are of numerous types and their scopes of investments are various.  The representative of CCB said that the “JPMorgan Asia Wealth Creation Choice” provides a unique opportunity for investors to invest overseas markets.  They not only save costs but also make use of professionals to share the benefits of the booming overseas markets.  JF Asset Management has many years of asset management in overseas markets and its investment portfolio is comprehensive and diversified.  Performances of funds under their management are outstanding and are highly reputed by authoritative agents including S & P, Morning Star, etc.