ICBC raises largest overseas fund
3 July 2007
Industrial and Commercial Bank of China, one of China's largese banks, plans to invest US$584.5 million abroad through an overseas-investment fund, the Wall Street Journal reported. In a statement, the bank said it plans to offer investors a fund that includes investments in overseas stocks. The fundraising effort marks renewed interest in the Qualified Domestic Insitutional Investor (QDII) program, which allows Chinese investors to pour funds into overseas stocks. Beijing expanded the scheme in March as part of an effort to divert more funds out of its increasingly overvalued domestic markets. The Shanghai Composite Index has dropped 12% since May 29, the newspaper reported, but has gained 43% overall this year. Since it was launched last year, the QDII program has done little to move Chinese funds abroad.
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