(China Alert) MRF: Right place at the right time

– July saw the largest fundraising for northbound MRF to date
– JP Morgan has the lion’s share but has begun restricting subscriptions
– Demand for offshore exposure is rampant; quota is far from abundant

Update: Well, what do you know; MRF monthly net flows into global funds broke RMB1bn for the first time in July. Z-Ben Advisors admittedly wasn’t particularly impressed by the first few months of the program but perhaps all it needs is a bit of patience (and the fact that most other ways to get money out of China are currently on hold). MRF is a different ball game from the domestic fund industry at the moment, and slower fundraising is to be expected, but a combination of product, distribution strategy and brand name (at the right time) can sell in China. The question now is who else is positioned to replicate success in MRF.

The current outbound state of play is, how shall we put it, less than ideal. While demand is surging, there are currently very few options to capture it. With QDII quota running dry and QDLP and QDIE heading in a similar direction, mainland investors have …

Full versions of our China Alerts are for clients only, if you would like more information about a subscription please contact us:
Tel: (+86 21) 6075 – 8163 Email: [email protected]