23 March 2019

Harvest fund gives mainland investors access to offshore assets

Harvest Fund Management Co. Ltd. has secured regulatory approval for a product that gives mainland investors access to offshore assets, including real estate, equities and bonds, Shanghai Securities News reported Friday, citing unnamed sources.

Investors must open an account with the company’s unit Harvest Wealth Management Co. Ltd. to join the Foreign Exchange Direct Access, which has been approved by the China Securities Regulatory Commission and the State Administration of Foreign Exchange, the report said.

The product is independent of Harvest’s quota under the Qualified Foreign Institutional Investor (QFII) scheme, according to the newspaper.

One unnamed investor was quoted as saying he was able to buy overseas real estate assets through the Harvest scheme, which is not subject to the normal US$50,000 limit set for an individual’s annual foreign exchange quota. He also said the account allows him to enjoy the same exchange rate as a sovereign fund, which is better than that under the QFII scheme.

The move is seen as part of the government’s effort to encourage private capital to invest overseas and ease the upward pressure on the renminbi, an analyst said. Earlier this month, China announced a cross-border stock trading program between the Shanghai and Hong Kong bourses, which provides a mutual market access mechanism for investors on both sides.

– Contact HKEJ at [email protected]



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