Yuanta Securities, the only China-based stock company in Korea, is gearing up for the upcoming two-way stock trading scheme between Hong Kong and Shenzhen exchanges.
Its key strategic product is an offshore renminbi fund, investing in promising small- and medium-cap stocks in Shenzhen.
Shinhan BNPP China Mainland RQFII Securities Feeder Investment Trust Equity, which was launched late last month, achieved 50 billion won ($45 million) in subscribed capital during the first nine days.
A model promotes Yuanta’s renminbi fund.
The fund allows its subscribers to invest preemptively into Shenzhen’s blue chip A shares, which was a point of attraction to individual investors who have an eye on mainland China’s market.
It especially focuses on stocks that benefit from the Chinese government’s recent policies, such as infrastructure, health care, information technology, service, environment and consumer goods.
“After experiencing the synergy effect of the Hong Kong-Shanghai stock connect, investors are increasingly keen on the upcoming Hong Kong-Shenzhen connect,” said Kim Yong-tae, the company’s product planning manager.
Shenzhen’s stock operator is especially marked for its wide investment access to China’s blue chip SMEs and new growth industries, Kim added.
The consigned operator for the fund is Shinhan BNP Paribas Asset Management. The company was the first financial company here to acquire th e RQFII, the qualified foreign institutional investor license for renmibi operation in China.
By Bae Hyun-jung (firstname.lastname@example.org)