Friday, April 10, 2015

China offshore funds halt subscriptions as HK share binge exhausts quotas

China offshore funds halt subscriptions as HK share binge exhausts quotas

[SHANGHAI] A sudden surge in mainland money chasing after Hong Kong's share rally has prompted a dozen Chinese overseas mutual funds to suspend subscriptions on certain products, citing quota limits and the interests of existing fund investors.
Chinese funds that invested overseas under the Qualified Domestic Investor (QDII) pilot scheme had long struggled to attract investor interest but now they are in demand as a quick route into Hong Kong stocks.
Hong Kong shares rallied to a seven-year high in record turnover on Thursday on heavy buying by mainland investors, who for two days running have bumped up against the daily limits of the Shanghai-Hong Kong Connect scheme that allows them to buy Hong Kong stocks.
GF Fund Management Co said in a statement on Friday that its GF Global Select Stock Securities Fund has halted new subscriptions because its QDII overseas investment quota, at US$600 million, had been exhausted.
The company said it is applying for a new quota from China's foreign currency regulator and will reopen the product to new investors once it gets approval.
The foreign currency regulator had granted $90 billion in QDII quotas as of the end of March, including US$37.6 billion to mutual fund companies.
China Asset Management Co also suspended subscriptions to one of its QDII products on Friday, saying it wanted to "protect the interests of fund investors and ensure stable operation of the product".
China Universal Asset Management Co, HuaAn Funds and Yinhua Fund Management Co have also closed some of their QDII products to new investors over the past two days.
REUTERS

US, Cuba chief diplomats hold landmark meeting

US, Cuba chief diplomats hold landmark meeting

[PANAMA CITY] The Cuban and US foreign ministers held a historic meeting in Panama late Thursday, the highest-level encounter between the Cold War-era foes before their presidents attend a historic summit.
The US State Department's Twitter account published a picture of US Secretary of State John Kerry and Cuban counterpart Bruno Rodriguez looking at the camera with straight faces as they shake hands, on the eve of the Summit of the Americas.
It was the first time the chief diplomats from the two nations met since 1958, one year before Fidel Castro's revolutionary guerrillas came to power.
Mr Kerry and Mr Rodriguez were in a room with two chairs and a glass coffee table, but the tweet did not reveal more.
The presidents of the two nations, Barack Obama and Raul Castro, landed in Panama ahead of their own historic encounter set for the summit on Friday and Saturday, marking another milestone in their efforts to thaw relations that froze in 1961.
Mr Obama was moving closer to removing a major hurdle in the US-Cuba diplomatic thaw, as a US senator indicated that the State Department recommended removing Havana from a list of state sponsors of terrorism.
Senator Ben Cardin, a leading member of the upper chamber's foreign relations committee, said the removal was "an important step forward in our efforts to forge a more fruitful relationship with Cuba."
During a trip to Jamaica before heading to Panama, Mr Obama confirmed that the State Department had completed a review of Cuba's inclusion on the list, but that he declined to say what its recommendation was.
Having Cuba's name on the list has been a major sticking point in negotiations aimed at reopening embassies, which closed after the foes broke relations in 1961.
The blacklisting means that Cuba is subject to a ban on weapons exports and economic aid as well as financial sanctions that make it difficult to get World Bank and other loans.
Cuba was first put on the list, which also includes Syria, Sudan and Iran, in 1982 for harbouring ETA Basque separatist militants and Colombian FARC rebels.
THAW TO TAKE TIME
Mr Obama said the overall talks on establishing diplomatic relations with Cuba was moving along as he expected.
"I never foresaw that immediately overnight everything would transform itself, that suddenly Cuba became a partner diplomatically with us the way Jamaica is, for example," he said. "That's going to take some time." "I do think that we'll be in a position to move forward on the opening of embassies in respective countries," Mr Obama said.
An announcement about the terror list during the 35-nation summit would add to the historic symbolism of the gathering.
The meeting will mark the first time that a Cuban leader attends the event.
Mark Weisbrot, director of the Washington-based Centre for Economic and Policy Research think tank, said removing Cuba from the list would be "just the beginning" of efforts to normalize relations.
"This is just a bare-minimum first step," Mr Weisbrot said, noting that Havana also wants Congress to lift the US trade embargo and Washington to abandon the Guantanamo Bay naval base on Cuba's eastern edge.
Before Cuba can be removed from the list, Congress will have 45 days to decide whether to override Obama's recommendation.
US lawmakers who have been critical of the diplomatic detente could seize on the review of the list to further attack Mr Obama's Cuba policy.
US Senator Ted Cruz, a Cuban-American Republican running for his party's presidential nomination, has been among the most vocal critics of the rapprochement.
VENEZUELA WILDCARD
A scene of lingering tensions among Cuban dissidents and government sympathizers emerged in Panama City when some 100 Castro regime supporters jeered dissidents as they arrived at a Latin American civil society forum.
US State Department spokeswoman Marie Harf condemned "those who use violence against peaceful protesters." Analysts have pointed to another potential problem for Mr Obama at the summit - the sanctions he imposed against Venezuelan officials accused of human rights abuses in an opposition crackdown.
Venezuelan President Nicolas Maduro, Havana's main ally in the region, said Thursday he had gathered 13.4 million signatures in a petition calling for Mr Obama to lift his executive order, which calls Caracas a US national security threat.
Mr Maduro welcomed White House statements saying it does not see Venezuela as a threat after all, adding that it could "start a new historic era in relations." AFP

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