Feb. 14, 2007 (China Knowledge) – Bank of China <601988> <3988> has launched a domestic wealth management product with exposure in foreign equities after scrapping its first overseas investment product.

The overseas investment fund was terminated after four months due to low investor interest and limited returns caused by the appreciation of the RMB. Worth RMB 578 million, the fund’s net asset value dropped to below RMB 200 million for 20 consecutive days since Jan. 12 after a large redemption from individuals, triggering the liquidation, the Beijing-based bank said in a statement on its website.

The new open-ended QDII fund, which will put money in other open-ended funds with assets of more than US$200 million and will focus on Hong Kong-listed companies, including H shares and red chips, will accept subscriptions from now until March 22.