Barings launches renminbi bond fund

Baring Asset Management is to launch a China Bond fund providing investors with exposure to the country's previously restricted fixed interest markets, as demand for new ways to play the Chinese growth story continues to build.

Sean Chang, who joined Barings in May from HSBC Global Asset Management as head of Asian debt, will manage the fund from his base in Hong Kong. He will select investment grade issues from Chinese companies denominated in renminbi and US dollars, while also buying bonds from international companies which have renminbi-denominated debt. The Chinese authorities are currently running a pilot scheme aiming to open up its bond market, making access to the country’s debt markets easier. Unlike the existing Qualified Foreign Institutional Investor (QFII) scheme which is more restrictive, the...