Shanghai-based quantitative investor, Mingshi Investment Management, has been granted an Australian Financial Services licence (AFSL) and will target sophisticated investors with a launch of two Australian-domiciled funds.
Mingshi, which takes a quantitative approach, said the funds were designed to target institutional investors with a focus on China’s onshore markets of the Shanghai and Shenzhen stock exchanges.
Mingshi’s global China A strategies include:
- China A Market Neutral (Optima) strategy designed to perform across all market conditions targeting zero-net and low correlation with China and global equity beta; and
- China A Long Only (Maxima) strategy – benchmark-relative long-only strategies built on Mingshi’s proprietary quantitative research and best-in-class risk management framework.
Following obtaining its AFSL here, Mingshi would also soon offer:
- An AUD China A Market Neutral strategy, and
- AUD China A Long Only fund.
The manager said it was also in talks with potential investors to start a China A green-focused fund investing in stocks on the Shanghai and Shenzhen stock exchanges.
“The onshore China A-share market offers exceptional opportunity for institutional and other sophisticated investors which does not exist in any other major market,” Lewis Prescott, partner and international chief executive at Mingshi, said.
“The factors, products and sentiment that drive the Chinese onshore market are very different to the drivers of equity prices in developed markets. As such, local managers – such as Mingshi – that combine the best of on the ground local academic and applied research, with world class trading and risk management arguably have an edge right now.
“Global investors, including institutional and super funds in Australia are increasing their allocations to China and they need high-quality managers.
“Despite the geopolitical headlines around Australia-China or US-China relationships, from a capital allocation point of view, we are still seeing incredible interest.”
