Managed account platform gives new hope for investors seeking alpha in China
Currency restrictions, tight investment rules and concerns about asset segregation have made it difficult for foreign investors to gain alpha from mainland China investments. But a new managed account platform offering access to China ‘sunshine funds’ may represent an early move to resolve some of the concerns. Georgina Lee reports
China has a patchy track record when it comes to protecting investors. The misappropriation of investor funds by securities companies during the bond futures scandal in 1995 and the loss of investments in local government-backed investment trusts, such as Guangdong International Trust and Investment Corp (Gitic) that went bust in 1999, still linger in the collective memory.
This means investors are wary about asset segregation, control of assets and transparency when putting their money to work
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