BEIJING (XFN-ASIA) - The first US-registered China A Share Fund, launched by Morgan Stanley Investment Management (MSIM), will seek to boost its investment quota after all the units on offer were taken up in 45 minutes by individual US investors, The Standard reported.
'We will apply for more quota,' under the the Qualified Foreign Institutional Investor program, the Hong Kong-based newspaper quoted Tony Archer, Asia Pacific head of MSIM, as saying.
The Morgan Stanley China A Share Fund started trading on the New York Stock Exchange on Sept 28, a month ahead of schedule, in response to strong demand from US retail investors.
It raised about 244 mln usd by issuing 12.2 mln shares at 20 usd each.
The closed-end, non-diversified country fund invested at least 80 pct of its assets in A shares of Chinese companies listed on the Shanghai and Shenzhen stock exchanges.
Citing James Cheng, lead portfolio manager for the fund, the newspaper said the fund's investment strategy is to explore a wide variety of stocks, with the focus on A-share companies with strong earnings and cash flow growth potential.
The State Administration of Foreign Exchange assigned a 200 mln usd quota to MSIM in September.
will.davies@xinhuafinance.com