China Southern FMC awaits approval to launch 1st QDII product

China Southern Fund Management Co said yesterday it expected to gain regulatory approval next month to launch its first Qualified Domestic Institutional Investor (QDII) product.

The Shenzhen-based company plans to invest in stocks and equity-invested funds in 48 nations for its domestic clients, according to the company's statement on its website.

It is also reported that the new fund will invest 20% assets in the Hong Kong market in order to diversify risks.

Southern Fund received regulatory approval to invest abroad under the country's QDII program last month, as the government expanded its QDII program to mainland brokers and fund management companies (FMC).

Mellon Global Investments Ltd., an investment arm of global financial conglomerate Bank of New York Mellon Corp., has been assigned to advise on its overseas investments.

Southern Fund currently has about RMB 190 billion (US$25.1 billion) of assets under management.