China Asset Management subscribes to T Rowe Price's US$4 billion QDII product

Clifford Chance advised China Asset Management on its agreement with T Rowe Price for its US$4 billion QDII product, which was over-subscribed in one day and has now closed, despite the subscription period originally being scheduled to last a month. The fund will focus on global stock investments in Europe, Hong Kong, Japan, the US and emerging markets, and at least 30% of the product will be invested in Hong Kong stocks.

Under the QDII regime, domestic institutions are allowed to convert renminbi raised from PRC domestic investors into foreign currency to be invested overseas. The promulgation of these provisional regulations clarified the legislative framework under which domestic renminbi fundraising could be carried out by QDII fund management companies and the range of investments, including equities, debt securities and derivatives, towards which such funds could be applied.