A Shanghai-based subsidiary of the Swiss banking group has launched what it says is the first onshore equity fund in China by a foreign business.

UBS Asset Management’s wholly-owned business in Shanghai has launched an onshore equity fund, with the group saying it is the first foreign asset management house to do so, having secured a licence in July. 

The organisation has rolled out the UBS (CN) China Equity Private Fund Series 1. UBS Asset Management (Shanghai) has completed its initial fund offering to investors and the fund is now officially established. It will start the fund registration process with the Asset Management Association of China soon, UBS said in a statement yesterday. 

The fund will primarily invest in mainland China A-shares and is available to qualified institutional investors and high-net-worth individuals based in China. 

Zizheng Wang, a portfolio manager at UBS Asset Management (Shanghai) with more than seven years' experience in A-share investment and research, will manage the fund, UBS said. 

"From a long-term perspective, UBS AM sees sustainable growth in the Chinese economy and opportunities in the A-share market. Blue-chip stocks in the A-share market are fairly valued and leading companies across numerous sectors are enhancing their international competitiveness, leading to attractive investment opportunities,” Wang said. 

Aries Tung, head of strategy and business development for China, at UBS Asset Management, said: “UBS AM has a comprehensive plan to develop its business in the China market and will gradually roll out various asset classes, including fixed income and alternatives."

UBS AM first entered the China market in 2005 through UBS SDIC Fund Management Co, a joint venture with the State Development & Investment Corporation, offering onshore mutual fund management and services. In 2011, UBS AM established UBS Asset Management (China) as a wholly foreign-owned enterprise in Beijing.