China's Maiden Bond Fund Raises CNY 5B in Investments

Fidelity International, China's first bond fund, raised 5 billion yuan ($700 million) of investment, deepening the asset manager's presence in the $3.8 billion mutual fund market. Helen Huang, China director, told Reuters that Fidelity is asking Chinese regulators to relax data security rules to better share research in the region to boost its growth potential in China.

Fidelity and China's second-largest mutual fund, a bond fund, shortened the subscription period and raised funds from institutional investors in three weeks, the fund manager said. There are more than 150 players in China and the mutual fund industry, including foreign companies such as BlackRock, Schroders and JPMorgan Asset Management.

"The fundraising size is rather encouraging" due to tough competition in the local market and Fidelity's limited track record in China, said Huang, who heads Fidelity International's two-year-old China mutual fund unit.

More than 200 bond products were launched in China this year, with an average revenue of 2.28 billion yuan. Competitor Neuberger Berman raised 4 billion yuan in its first bond offering in China last March.

Alvin Cheng, fund manager of FIL Fund Management (China), said: "The new fund is an investment in government bonds, and Fidelity International aims to gradually increase its fixed-income products. to China to participate in investments in corporate bonds, green bonds and "There," he said. Co Ltd, China Division.