Fosun International and Hui Xian Asset Management Co. Ltd. (Hui Xian AM) announced the launch of the Hui Xian Industrial Trust on October 12th, 2013. An innovative investment trust, the Hui Xian Industrial Trust is the first of its kind in Mainland China, and is an important step in Fosun Internationals effort to further expand its portfolio of investments.
The Hui Xian Industrial Trust has been developed to invest in a diversified portfolio of Chinese industrial companies, focusing on mid and large-cap enterprises in the manufacturing and production sectors. It will invest mainly in stocks and securities issued by corporate entities in Mainland China, especially those with strong potential for growth.
The selection process for potential investments is rigorous and long-term, taking into account various traditional and non-traditional criteria, such as financial viability, proven leadership, reasonable size, right product or services, and geographic location. Fosun Internationals Hui Xian Asset Management team carries out due diligence on each prospective company, which includes gathering detailed information about its operational and financial performance, as well as any associated risks.
The Hui Xian Industrial Trust provides Chinese investors with an attractive opportunity to gain entry into the competitive Chinese industrial sector, allowing them to diversify their investments by investing in a broad range of industries and regions in Mainland China. As the Trust is currently only available to domestic investors, it provides an attractive option to diversify the Mainland Chinese investor’s portfolio in a cost-effective and efficient way.
The Hui Xian Industrial Trust also offers an inflow of additional capital into the private sector, enabling businesses to continue growing, developing and innovating. This capital can be put towards future business expansion, operating expenses, additional equipment purchases and other improvement projects, among others.
Over the long-term, Fosun International aims to provide Chinese investors with opportunities to gain exposure to the growth of Mainland Chinas economy with the Hui Xian Industrial Trust. Fosun International believes the launch of the Trust will have a positive impact on the Mainland Chinese economy, reinforcing the companys commitment to embracing globalisation and creating value for Chinese investors.
With the establishment of the Hui Xian Industrial Trust, Fosun International has demonstrated its commitment to establishing a successful business strategy in Mainland China. The Trust will provide a unique channel for domestic investors to benefit from Chinas sustained economic growth, furthering Fosun Internationals goal of becoming an international investment powerhouse.
Fosun International and Hui Xian Asset Management Co. Ltd. (Hui Xian AM) have shown that they put investors’ interests first, with the launch of their innovative Hui Xian Industrial Trust. With its rigorous selection process and the potential to benefit from China’s economic growth, the Trust provides domestic investors with an attractive entry into the Chinese industrial sector. The Trust will also bring additional capital into Mainland China’s private sector, enabling businesses to grow, develop and innovate. In addition, Fosun International’s commitment to the Hui Xian Industrial Trust reinforces the company’s goal of becoming an international investment powerhouse.
