CIMB-Principal launches second China-themed fund

CIMB-Principal Asset Management, betting that China will be one of the first to recover from the global economic turmoil, has launched its second China-themed fund this year.The RM150 million fund, known as the CIMB Islamic Greater China Equity Fund, will focus on high growth sectors that could benefit from the Chinese government's US$585 billion (US$1 = RM3.48) stimulus packages.

These include industrial, consumer and technology companies."The China-theme is very strong. We have noticed that investors are keen to invest in China for potentially higher gains. Now that China could be on the cusp of a longer-term recovery, we want to offer the opportunity for a different type of investment," chief executive officer J. Campbell Tupling said at the launch yesterday.

Its first such fund was a structured fund. The new one, an open-ended fund, will invest in syariah-compliant equities in the Greater China region, namely China, Hong Kong and Tawan. Investments will also be made in China-based companies that are listed in recognised overseas exchanges.

"These companies are typically medium-to-large cap companies which are currently trading at very attractive valuations," chief investment officer Raymond Tang said, declining to name any of the companies as yet.He said there was strong potential to be gained particularly from infrastructure development companies, as 60 per cent of the stimulus packages went to this sector.The fund is meant for a broad range of investors seeking medium-to-long term capital appreciation