Huaxia Fund, Lesha Bank Launch Sharia-Compliant China Stock Fund
AM730 · 2 SOURCESabout 5 hours ago5 MIN
Summary
Huaxia Fund (Hong Kong) and Lesha Bank LLC, a Qatar Financial Centre Regulatory Authority (QFCRA)-authorized Islamic investment bank, announced on Wednesday the signing of a memorandum of understanding to strengthen investment and capital market cooperation between China and Gulf Cooperation Council (GCC) regions . As the first flagship product of this strategic partnership, the two firms will launch a Sharia-compliant China stock fund targeting qualified investors from Qatar and the broader Middle East .
Key Points
- The MOU was signed by Huaxia Fund (Hong Kong) CEO Gan Tian (甘添) and Lesha Bank Group CEO Mohammed Ismail Al Emadi, marking Huaxia Fund's inaugural strategic collaboration in the Middle East market
- The fund will operate under an Islamic Shariah-compliant investment framework and will be managed by Lesha Bank as primary investment manager, with Huaxia Fund (Hong Kong) serving as co-investment manager responsible for investment decisions and liquidity management
- The fund aims to offer Qatar and GCC qualified investors access to China's new quality productive forces enterprises while diversifying their global investment portfolios
- Lesha Bank expressed optimism about China's long-term market potential, citing supportive policies, improving profitability in key sectors, and reasonable valuations amid a sector-led recovery in 2026
- The partnership seeks to deepen economic and investment ties between China and Qatar, with the fund providing a risk-managed investment vehicle for Middle Eastern capital
Why It Matters
This collaboration represents a significant milestone in connecting Chinese capital markets with Islamic finance, opening a new channel for Middle Eastern sovereign wealth and institutional capital to access Chinese equities through a religiously compliant structure . For Hong Kong as an international financial centre, such cross-border product innovation between Chinese asset managers and global Islamic banks reinforces the city's role as a gateway for attracting diversified international capital flows into mainland markets .
This collaboration represents a significant milestone in connecting Chinese capital markets with Islamic finance, opening a new channel for Middle Eastern sovereign wealth and institutional capital to access Chinese equities through a religiously compliant structure . For Hong Kong as an international financial centre, such cross-border product innovation between Chinese asset managers and global Islamic banks reinforces the city's role as a gateway for attracting diversified international capital flows into mainland markets .