The asset management house has launched a fund designed to exploit new openings in China's equity market stemming from recent liberalisation.

Investec Asset Management is launching a daily dealing Chinese equity fund as part of its flagship Luxembourg-domiciled UCITS Global Strategy fund range, a move highlighting how non-Chinese firms are scrambling to roll out investment products linked to the Asian country.

The fund makes use of the firm’s Renminbi Qualified Foreign Institutional Investor licence, awarded by the China Securities Regulatory Commission, and the allocation of its RQFII investment quota by the Chinese State Administration of Foreign Exchange.

The Investec GSF All China Equity Fund is co-managed by Greg Kuhnert and Wanyi Yao, supported by the global 4Factor™ equity team, which is based both in London and Hong Kong. It will invest in onshore and offshore Chinese equities and will be managed as part of Investec Asset Management’s suite of 4Factor™ global equity funds, it said in a statement last week.

In the near future, Investec Asset Management intends to use its RQFII licence and quota to launch a further new daily dealing UCITS fund in its GSF range focused on onshore Chinese bonds, it said.

“This represents a natural progression for our 4Factor equity business. China has always been an important part of our universe, and we have demonstrated our ability to leverage our knowledge of the domestic A-share market through our QFII China fund,” Kuhnert said.

“The new RQFII All China Fund is agnostic about where a company is listed, whether it be it through local A or B listings, or offshore H or USA listings – our aim is simply to buy the best ideas at the cheapest price. We are able to take advantage of valuation anomalies that currently exist because the capital account is not fully open yet. As we look at the fund’s investment universe of over 1000 companies we are excited by the opportunities arising from the shifts in the growth drivers of the Chinese economy, and believe that a disciplined bottom-up approach focusing on quality, improving profitability and valuation is key to capturing these trends,” Kuhnert added.