BlackRock has further expanded its efforts in the Chinese equity market with a new approach for Citywire AA-rated Helen Zhu and her team.
The BGF China Flexible Equity fund, which is Luxembourg-domiciled, is designed to capitalise on opportunities in the onshore (A-Share) and offshore (H-Share and ADR, among others) markets.
BlackRock said it has designed this fund to operate across both markets, rather than investors having to invest in two distinct funds. It will hold between 20 and 50 companies, drawn from a universe of 3,300 onshore and 1,000 offshore stocks.
Zhu is head of China equities at the group and is manager of both the BGF China and BPF BlackRock China funds. She will be supported by a team of 10 dedicated China-focused research analysts based in Hong Kong and Shanghai.
Commenting on the launch, Zhu said: ‘Chinese equities have been demonstrating higher sector return dispersions, offering active stock pickers a rich investment universe. Dynamic, vibrant and now more accessible than ever before, we believe Chinese equities offer investors an attractive opportunity to invest in the transformation of this huge country.’
Zhu said she will also seek to capitalise on the nuances in the Chinese market when it comes to valuation differences between the markets, factors which impact market cycle performance, and sector-specific opportunities.
The launch comes shortly after BlackRock unveiled a dedicated China A-Share fund for Jeff Shen at the start of November. This was launched as a systematic way of tapping the country’s complex domestic market.