HSBC Jintrust Fund Management Co Ltd expects to launch products under the Qualified Domestic Institutional Investor scheme after it wins a QDII license next year, said a senior official with its parent company yesterday.
"China's stock market is volatile and may be not very successful in the short term. But we see solid growth stories in the market and hope to get the QDII license as soon as possible to launch new products," said Rudolf Apenbrink, chief executive officer of Asia Pacific with HSBC Global Asset Management Ltd.
The QDII scheme allows foreign institutional investors to gain access to the mainland's stock market.
Apenbrink stressed investors should look for long-term opportunities instead of sharp volatility in the short term.
"If you take a look at the share valuation, the price-to-earnings ratio for some A shares has dropped to around 17 times - that's definitely not expensive. Investors should adopt a longer-term horizon," said Apenbrink.
Although Asian stock markets are in the doldrums at the moment, Apenbrink predicted their growth would double or triple in the next five years. By March, HSBC Jintrust had assets under management of 6.7 billion yuan (US$971 million).
(Shanghai Daily June 27, 2008)