6 asset managers get nod for hybrid funds

Six Chinese asset managers received regulatory approval to float three-year hybrid funds focusing on listed unicorn companies (startups with a valuation in excess of $1 billion) on Wednesday, an indication of the further opening-up of China's financial industry.

E Fund Management Co Ltd, Harvest Fund Management Co Ltd, China Merchants Fund Management Co Ltd, China Southern Asset Management Co Ltd, China Universal Asset Management Co Ltd and China Asset Management Co Ltd were the firms that got the clearance for three-year hybrid funds, the China Securities Regulatory Commission said on Wednesday.

The hybrid funds will mainly invest in Chinese Depository Receipts of Chinese unicorn companies listed in overseas markets, treasury bonds, local treasury bonds and AAA-rated corporate debt. The lock-in period of the fund is three years and it would be listed as an open-ended fund, which means investors can also transfer their shares at the bourses.