Asset Managers to Forge Ahead With CDR Funds Despite Xiaomi Delay

Asset Managers to Forge Ahead With CDR Funds Despite Xiaomi Delay

Dou Shicong

Date: Wed, 06/20/2018 - 13:35 / source:Yicai
Asset Managers to Forge Ahead With CDR Funds Despite Xiaomi Delay
Asset Managers to Forge Ahead With CDR Funds Despite Xiaomi Delay

(Yicai Global) June 20 -- Smartphone giant Xiaomi’s decision to postpone its offering of Chinese depository receipts will not affect asset manager plans to launch equity funds targeting tech firm listings.

Several asset management firms are expected to release details of new funds this week focused on CDRs and tech firm offerings, a market insider told state-backed news site The Paper.

Xiaomi had been expected to become the first company to take part in China’s CDR pilot, an ambitious attempt to rejuvenate the mainland market by allowing overseas-listed tech giants to also trade in A-shares. The Beijing-based handset maker will require more time to prepare the offering following consultation with the country’s securities regulator, analysts said.

The funds are three-year closed-end funds so a change in one company’s floating time will not have a major impact on equity products, the source said. As the funds will also which will participate in tech IPOs as cornerstone investors, there will be many other targets to choose from in the future.

Six asset managers including China Asset Management, E Fund Management, China Southern Asset Management aim to set up funds to exploit the CDR offerings and new economy company listings.

Editor: William Clegg

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Keywords: Xiaomi, CDR, Strategic Allotment Funds