Fortune SGAM to raise up to US$3 bln through 1st QDII fund

Fortune SGAM Fund Management Co, the joint venture of Baosteel Group and French’s Societe Generale in developing their business in Chinese capital markets, will launch a new mutual fund today under China’s Qualified Domestic Institutional Investor (QDII) scheme to raise up to US$3 billion, said the company in a statement.

The minimum subscription for the country’s sixth QDII fund, which is scheduled to commence subscription today, is set at RMB 5,000, according to the statement. This is the first time for the Shanghai-based fund management firm to launch a QDII fund, which would be mainly invested in Chinese companies listed in the U.S., Singapore and Hong Kong.

Fortune SGAM sees the recent skid in global equities markets as a decent long-term investment opportunity, but analysts are not so optimistic on concern of the U.S. subprime mortgage crisis.