GF first fund firm to expand into Europe

2015-October-20  08:53    Shenzhen Daily

GF Fund Management has become the first Chinese investment manager to expand into Europe, opening a London office as it seeks to boost two-way investment flows with the world’s second-biggest economy.

GF International Asset Management, a GF Fund Management subsidiary and part of GF Securities, said in a statement it would provide investment products based around Chinese assets and advise global institutions on accessing quotas to trade directly in Chinese markets.

The announcement of the move coincides with this week’s visit of President Xi Jinping to Britain to deepen economic ties between the two countries as China looks to further liberalize its financial markets.

“Our company’s establishment in Britain bridges investment management between China and Europe. The strong growth of the Chinese economy presents exciting prospects for European clients,” said Lin Chuanhui, chief executive of GF Fund Management, one of China’s 10-biggest fund managers, with assets under management of US$48 billion.

“Additionally, as Chinese investors become more sophisticated, their need for global diversification is increasing. We are entering a golden era in China-U.K. relations, making GF International well-positioned for success,” he said.

The news follows the signing of a memorandum of understanding between the fund industry trade bodies of both countries earlier this year aimed at boosting industry ties.

London is also seeking to cement its position as the largest offshore hub after Hong Kong for reinvesting in China’s mainland markets using yuan.

Meanwhile, Nord Engine Asset Management, an asset management company based in Shanghai, said yesterday it was investing an undisclosed amount in U.K.-based investment platform DealGlobe.

Established in London in early 2014 with financial support from the U.K. Government, DealGlobe is designed to help Chinese companies invest in overseas markets, primarily in Britain and continental Europe.

“Nord Engine has established a fund in Britain to invest in small and medium firms in Europe and we see great opportunities and potential in the China-EU market,” said Zhu Yang, chairman of Nord Engine Asset Management Group, which was founded in 2008 and specializes in investing in equities, funds of funds, fixed income and property assets. (SD-Agencies)