Zhong Lun Advises on China’s First Pilot QDII Fund (about USD 200,000,000) 2006-11-17

As approved by the China Securities Regulatory Commission (“CSRC”) with the State Administration of Foreign Exchange (“SAFE”) approved quota , Hua An Fund Management Co., Ltd (”Hua An”) successfully launched Hua An International Balanced Fund, the China’s first qualified-domestic-institutional-investor (“QDII”) fund on November 2, 2006.
The Zhong Lun team (including Wantao Yang, Jian Zhang and Paul Guan of Shanghai Office) advised Hua An on the launch of the Hua An International Balanced Fund, including but not limited to, deal structuring, fund raising documentations, overseas investment and regulatory documentation, risk analysis, etc. Such a fund is, so far, the only approved QDII program in China’s fund industry and is widely recognized as an important milestone for the development of China’s fund industry and China’s overseas investment practice. Different from other QDII products previously launched by commercial banks and insurance companies, Hua An pioneered such program without the benefit of any special regulation. Such a fund is also significantly different from most banking QDII products with regard to product investment and management schemes by targeting a diverse range of overseas products including global equities, global funds, real estate securities, commodities and fixed income products with Hua An’s substantial participation in overseas investments. With our expertise in complicated cross-border transactions and financial innovations, Zhong Lun's team has worked closely with the client, financial institutions, international counsels and regulatory authorities providing quality legal services for the successful launch of this fund.
Wantao Yang and Paul Guan have been advising commercial banks on quasi-QDII products for the past a few years and currently, they are also assisting commercial banks on QDII programs and other innovative financial products.