HK to add more Islamic banking funds

A year after debuting an Islamic investment fund in Hong Kong, RHB Asset Management Sdn plans two more as it seeks to develop awareness in the Chinese market.

The first of the new funds, which will target Shariah-compliant stocks and bonds, is due to start this month and the second by the end of September, Ho Seng-yee, chief executive officer of the Kuala Lumpur-based company, said in an interview. The existing RHB-OSK Islamic Regional Balanced Fund, which invests in Islamic equities and fixed income, has 15.5 million ringgit ($4.3 million) of assets.

"Despite the global spread of Islamic finance, the development in China is still at the initial stage," Ho said. "We believe the market will continue to grow as it could be the start of a new financial relationship between China and the Islamic world."