China’s top bank launches first India-dedicated investment fund

Source: The Hitavada      Date: 15 May 2018 12:05:59


 

By KJM Varma
BEIJING

THE Industrial and Commercial Bank of China (ICBC), a top State-run Chinese bank has launched China’s first India-dedicated publicly offered investment fund, urging the Chinese to invest heavily stating that the Indian economy is entering the “golden age of economic take-off”.The move, regarded as significant by observers to boost investments in India, comes just about a fortnight after the first ever informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping at Wuhan, where the two leaders sought to give a new direction to the bilateral ties to tap their economic potential.


The fund, named as the Industrial and Commercial Bank Credit Suisse India Market Fund, will “invest in exchange-traded funds listed on more than 20 exchanges in Europe and the US that are based on the Indian market." It is China’s first publicly offered fund for investing in India, State-run Global Times reported.The fund will invest in the future of the Indian economy and track the distribution of the industrial structure across the Indian market, the report quoted a fund manager as saying.The bank listed sectors for investments specifically, in terms of the major industries weighted distribution of the index.


The financial industry will account for the highest proportion, followed by information technology, alternative consumption, energy, essential consumption, raw materials, medicine, healthcare and other industries, it said. The ICBC Bank, the largest in the world with over USD 3.6 trillion in assets, has given an upbeat picture of India’s economic growth path, while launching the fund.According to the announcement of the offering, the ICBC Credit Suisse Indian Market Fund (LOF) will be available for sale at both the on-site and off-site markets from May 7 to May 25.