Two Chinese fund management firms are looking to roll out retail funds, comprising overseas real estate investment trusts (REITs), Asian Investor reports. Lion Fund Management and Penghua Fund Management, using their qualified domestic institutional investor (QDII) status, have submitted applications to the China Securities Regulatory Commission regarding the same.
Penghua is planning to select 30-50 REITs from the North American market, mostly the U.S., which boasts about 130 REITs, as compared to 30 for Canada. Lion, which will seek to match the risk profiles of various REITs to appropriate economic cycles, will also invest in other developed markets, such as Europe, Australia and Hong Kong.
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