MOSCOW, September 23 (RIA Novosti) - Bank of China Hong Kong Asset Management (BOCHK) has spearheaded a $165 million high-yield bond fund in a joint venture with Citigroup to attract pension and retail investors across Europe, The Wall Street Journal reported Tuesday.
"We definitely want to establish our brand as one of the best for China fixed-income and equities investments," Au King Lun, chief executive of BOCHK Asset Management, was quoted by The Wall Street Journal as saying. "We want to bring our brand and expertise to Europe."
BOCHK has transferred $165 million to Citigroup Luxembourg, where European regulations surrounding such funds allowed for a much easier start.
Citigroup’s role in the deal will consist in marketing the fund to potential investors throughout Europe, something Bank of China is unable to do due to its small presence in the European market.
It is the first time a Chinese state-owned bank has ever appealed to retail and pension fund investors in Europe to govern its finances, The Wall Street Journal stated.
The fund is set to commence Tuesday.
According to the newspaper, the deal is just the start of a broader BOCHK presence in Europe, with more similar funds to be launched in the future.
