Investment in China

RNS Number : 7305H

Bankers Investment Trust PLC

24 June 2013

 



THE BANKERS INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

24 JUNE 2013

THE BANKERS INVESTMENT TRUST PLC

INVESTMENT IN CHINA

In April 2013 Bankers Investment Trust, through its appointed investment manager Henderson Global Investors, applied to the Chinese State Administrator of Foreign Exchange (SAFE) for a quota under the Qualified Foreign Institutional Investor (QFII) scheme to invest directly in RMB-denominated 'A' shares on China's mainland exchanges.

We are pleased to announce that Bankers Investment Trust has now been granted an initial $25m quota, to be held in a segregated nominee account for the Trust.  The quota will be invested across a number of Chinese companies and is expected to be completed before the end of November 2013. Henderson has an investment office in Beijing and a long history of managing Chinese equities, across a number of funds.

At the end of May 2013, there were over 2,400 companies listed on the A share markets of Shenzhen and Shanghai. The total market value was RMB 22.7 trillion (around US$ 3.7 trillion) which is equivalent to 50% of China's GDP in 2011. Individual investors dominate the market with over 140 million accounts, while institutional investors only account for 9.5% of the total A share market capitalisation value. (Source: Goldman Sachs, United Nations)

Alex Crooke, Investment Manager for Bankers Investment Trust commented:

"Bankers Investment Trust already invests in Chinese companies through 'H' shares listed in Hong Kong, however the greater depth and wider selection opportunities of the A share market are restricted to many investors.  We are very excited to have been granted a QFII quota to invest directly into this market. The overall market is appealing as we see significant potential for earnings growth over the next 5 years from a low valuation point. The breadth of the A share market gives us access to companies operating across many more sectors within the Chinese economy."

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For further information, please contact:

Alex Crooke Fund Manager The Bankers Investment Trust PLC Telephone: [phone]	James de Sausmarez Director of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

Note:  The Bankers Investment Trust PLC aims to maximise shareholders' total return by means of a broadly diversified international portfolio.  It aims to achieve long term asset growth, in excess of the FTSE All-Share Index and regular dividend growth, in excess of the increase of the Retail Prices Index. 

 

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