BNY Mellon Asset Servicing has been selected by China Construction Bank (CCB) as the global custodian for the upcoming QDII fund in China to be launched by ICBC Credit Suisse Asset Management(ICBCCS).
The QDII scheme was launched in July 2006, allowing Chinese investors to purchase foreign investment products via domestic banks. However the Chinese government stopped new QDII funds in May 2009 due to heavy losses. It reopened the market in October 2009, and recently added Cananda to the markets available to investors.
According to the statement from BNY Mellon, ICBCCS is the first fund management company to have two QDII products on the market following the completion of the new funds fundraising.
The ICBCCS Global China Opportunity Equity Fund was the companys first QDII fund which launched in 2008. Citigroup was appointed custodian for the fund.
QDIIs have had a difficult ride over the last couple of years, due in part to the reduction in investor confidence triggered by the global financial crisis, said Chong Jin Leow, head of Asia, BNY Mellon Asset Servicing. However confidence is rapidly returning and with in US$4.2 billion worth of QDII quotas granted by the State Administration of Foreign Exchange in 2010 up to the end of March, it is clear that the door is wide open again after being closed for about 15 months.
ICBCCS is a joint venture initiated and held by Industrial and Commercial Bank of China Co, Ltd, Credit Suisse, and China Ocean Shipping (Group) Company which hold stakes of 55%, 25% and 20% respectively.