HSBC Asset Management is re-offering its popular HSBC China Momentum Fund and will increase its proportion of A-share in the fund's portfolio, Richard Wong, director and country head of the company's China investment team said here Monday.

Wong said: "A key feature of the HSBC China Momentum Fund is that investors are provided access to Chinese mainland's large A-share market. The 463 billion US dollars A-share universe of 1,300 shares, covering more than 50 industries, offer investors an opportunity to take advantage of mainland's dynamic economy and potential growth."

"Driven by robust domestic consumption and investments, mainland's economic growth is expected to stay at around 8 percentin 2005. Foreign direct investment inflows, which rose 13 percent to 61 billion US dollars in 2004, should remain strong," he said.

"The 2008 Olympic Games and mainland's entry into the World Trade Organization will further support mainland's economic growth. We believe mainland will remain the destination of choice for investors," said Wong.

Currently, the proportion of A-share just accounts for 14.6 percent in the whole portfolio of the Fund. Wong said as there are huge opportunities in the A-share market, the Fund will increase the proportion of A-shares in the portfolio.

According to HSBC Asset Management, the Fund was one of the first to offer retail investors in Hong Kong access to mainland's A-share market, when it was launched on Oct. 28, 2003. As of Feb. 3, 2005, the Fund has achieved a 32 percent return, considerably higher than the 9 percent growth in the CLSA China World index.

The Fund's offer period closes on April 7, 2005. Minimum investment is 3,000 US dollars, the company said.

Source: Xinhua