Guosen Securities to set up RMB fund in Hong Kong

Guosen Securities is planning to set up a US$300 million renminbi-denominated private equity fund in Hong Kong, Reuters reported, citing sources with direct knowledge of the situation. The fund is expected to tap into growing demand among investors for renminbi-denominated products in Hong Kong. Reuters cited unnamed sources as saying the fund would focus on the agricultural sector, which is set to undergo rapid transformation over the next several years. More than 10 asset managers have told Reuters that they planned to introduce renminbi-denominated funds in Hong Kong in 2011.