Search China Travel News:

Industrial and Commercial Bank of China (ICBC), China's top lender, has raised US$537 million for the country's first bank-run mutual fund, the bank's fund venture said Thursday.

ICBC set up the venture with Credit Suisse First Boston, a unit of Zurich, Switzerland-based Credit Suisse Group, in July.

The company raised 4.35 billion yuan (US$537.1 million) during the fund's sales period between July 26 and Aug. 26, according to a statement.

Company executives had said earlier that it aimed to raise up to 5 billion yuan, which could give a shot in the arm to stock markets wallowing in eight-year lows.

Both individual and institutional investors were among the buyers for the mutual fund, the company said.

“The result reflects investors’ confidence in China’s capital market,” the statement cited Guo Tehua, general manager of ICBC Credit Suisse Asset Management Co. Ltd. as saying.

“We are satisfied with the achievement of our first fund product,” Guo added.

Stock investments will account for 60 percent to 95 percent of the mutual fund’s net value while bond and cash assets will account for 5 percent to 40 percent, it added.

“We will especially pick large and mid-sized listed companies’ stocks whose value is currently underestimated,” said Jiang Hui, manager in charge of the first fund.

China’s stock market, lifted slightly by the government’s 2.1 percent revaluation of the yuan currency in July, is still down about 9 percent so far this year, hit by government plans to offload over US$200 billion of State holdings in listed firms.

Investors fear the sale will drive down the value of their holdings