ICBC, Credit Suisse raise China's largest bond fund

ICBC Credit Suisse Asset Management raised US$2.1 billion to set up China’s largest domestic bond fund, Bloomberg reported. The Double Profit Bond Fund will invest in domestic government debt, corporate bonds, short-term bills and renminbi-denominated convertible notes, according to a person familiar with the matter. ICBC Credit Suisse is a joint venture fund management company operated by Industrial and Commercial Bank of China (ICBC; 601398.SH, 1398.HK) and Credit Suisse (CS.NYSE, CSGN.SIX). The fund is targeted at investors keen to diversify away from China’s volatile stock market, which has fallen 21% so far this year on concerns that the country’s economy is slowing. By comparison, China AMC Hope Bond Fund, currently the largest bond fund with US$1.1 billion under management, is up 1.6% for the year.