Tisco Asset Management (TISCOAM) is launching a trigger fund for China, aiming to catch the momentum amid the country's reopening and the offering of government policies to stimulate the rebounding economy.
Saharat Chudsuwan, head of marketing and wealth advisory, mutual & private fund business at TISCOAM, said the Chinese government is likely to launch an accommodative monetary policy to drive the economy, which is forecast to expand by 4.6% this year.
The Chinese National Health Commission's lifting of quarantine measures for overseas arrivals from Jan 8 should be a catalyst for the Chinese economy to resume outstanding growth, he said.
The Organisation for Economic Co-operation and Development expects China's economy to grow by 4.6% in 2023, up from 3.3% in 2022.
Beijing may continue to stimulate the economy through various policies such as reducing interest rates and lowering the minimum required reserve ratio, as well as helping real estate developers access capital sources, said Mr Saharat.
"Given these positive factors, analysts have begun to raise the profit forecasts for listed companies. TISCOAM predicts this can be a turning point for the Hang Seng China Enterprise Index (HSCEI) to recover," he said.
TISCOAM is offering Tisco China Equity Trigger 5M#5 (TCHT5M5), a fund with high risk focusing on investment units of HSCEI ETF (master fund), an exchange-traded fund for stocks listed on the Hong Kong Stock Exchange and the Taiwan Stock Exchange.
The fund invests in investment units of the ETF listed on the Hong Kong Stock Exchange and managed by Hang Seng Investment Management Ltd. An initial public offering is scheduled for Jan 3-10 with a minimum subscription value of 1,000 baht.
The fund's target is to terminate the project when investment units have a value greater than or equal to 10.50 baht per unit, which is not a guarantee of return on investment. If the investment unit's value does not meet the target within the specified period, investors can buy, sell or switch investment units every business day with a goal that causes the project to be terminated, said TISCOAM.
"Investors cannot redeem this investment unit during the five-month period. If negative factors affect the investment, investors may lose a large amount of their investment," said a company statement.