China Universal Asset Management has launched China Universal Capital Protection Fund after receiving approval from China's Securities Regulatory Commission (CSRC) for a product with a capacity of RMB5bn ($761.2m).
The fund is one of the first to be approved since CSRC released new guidelines on capital-protected funds.
China Universal Capital Protection Fund is a three-year investment. It will comprise 60% bonds or money market instruments and 40% risky assets such as stocks or warrants.
Fund Manager Lu Wenlei said the fund will be open to both domestic and foreign investors. He said China has advanced from a period of low interest and that bond returns have increased in conjunction with interest rate hikes, making corporate bonds with high coupon rates a potential opportunity for the China Universal Capital Protection Fund.
The fund was registered with the Chinese regulator on 4 January.
This product is available now in Recent Additions (China).