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Banking & Finance

BOC to sell high-yield bond fund to European pension, retail investors

Bank of China Hong Kong (2388.HKG) Asset Management plans to sell a US$165 million (RMB1.013 billion) high-yield bond fund in Europe that will be marketed by Citigroup (C.NASDAQ) to pension and retail investors, The Wall Street Journal reported. The asset management company, owned by BOC, has moved the fund from the Cayman Islands to Luxembourg and has struck a deal with the US bank to distribute it. The move to Luxembourg, along with a structure that complies with European investment regulations, mean the fund can be widely sold to retail and pension-fund investors, marking the first time a state-owned Chinese bank will solicit such investors in Europe to let them manage money.

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