BlackRock has launched a China A-Share fund in a bid to offer investors systematic access to the country’s complex domestic market, Citywire Selector can reveal.
The BGF China A-Share Opportunities fund is a Ucits-compliant vehicle and will be overseen by the Systematic Active Equity team.
Jeff Shen, co-CIO of active equity and co-head of the systematic team, is lead manager on the fund with Rui Zhao serving as co-portfolio manager.
BlackRock said its systematic approach will combine quantitative signals alongside Big Data and machine learning insights. It will invest in around 300 companies from a universe of 1,300 of those on the Shanghai, Shenzhen and Hong Kong Exchange Stock Connect programmes.
It will be managed by a San Francisco-based team with trading executed in Hong Kong. Shen will be supported by a total of 80 investment professionals.
Commenting on the launch Shen said: ‘We've been applying systematic investment methods to equity markets for over thirty years and more recently, we’ve been researching and applying new methods – big data, machine learning and artificial intelligence – to our models.
‘We find these insights have extraordinary relevance in a market like China where data is quite often available and the market is large and complex.’
Shen said the strategy has existed for institutional investors for five years, and this new launch opens this idea to retail investors and provides daily liquidity.
The fund is registered for sale in the following country: Austria, Germany, Belgium, Denmark, Spain, Finland, France, UK, Italy, Norway, Sweden, Switzerland, Netherlands and Ireland.