ChinaAMC, one of China's major fund management companies, has got the nod from the top securities regulator to launch a fund that can buy stocks overseas.

The Beijing-headquartered company has been granted a fund sales limit to US$2.5 billion and is applying for more to the State Administration of Foreign Exchange, according to a statement on its website.

The fund is to be launched in RMB on September 27 and will invest in global stock markets including those in the United States, Europe, Japan, Hong Kong and other emerging markets.

At least 60 percent of the investment will go to equity securities like stocks and Hong Kong shares will account for about 30 percent.

This is the second of its kind following the first stock-oriented QDII (qualified domestic institutional investor) fund, which was issued by the China Southern Fund Management Co Ltd on September 12.

The first stock-oriented QDII fund had attracted almost 50 billion yuan (US$6.67 billion), far exceeding its sales limit of 30 billion yuan.

In an effort to curb excessive liquidity, the Chinese government has tried to encourage investment in overseas markets since 1996. The Shanghai-based Hua An Fund Management Co Ltd became China's first fund management firm to be allowed to invest overseas as a pilot QDII, with a quota of US$500 million.

Its first QDII product, launched in November last year, raised US$197 million and yielded five percent over the subsequent six months.