Chinese Stock Picker Raises $10 Billion in Half a Day

Posted on 03/25/2019

Chen Guangming, a former star portfolio manager at Orient Securities Asset Management Company Limited, started Shanghai-based Foresight Fund. Despite the Chinese stock market crash of 2015 still being an imprinted memory, Foresight Fund ceased receiving client subscriptions in its fund after going well beyond its 6 billion RMB fundraising target. According to news sources, the money was raised in less than half a day. The company allegedly raised more than 70 billion RMB (US$ 10 billion) for its mutual fund called the Ruiyuan Fund. Roughly 20 billion RMB was from China Merchant Bank Company’s fund distribution platform.

Chen Guangming generated big returns at his old employer. Orient Securities Asset Management Company is owned by Orient Securities Co., Ltd., also known as DFZQ. Chen Guangming is the former Chairman of Dongzheng Asset Management and personally oversaw Dongfanghong No. 4. from its inception in 2009 to the end of 2017.

Foresight Fund is cautiously optimistic on China, still seeing growth. In a local news story from Sina, Chen Guangming China’s growth is estimated t be less than 6%, but compares it to the U.S. whose GDP never exceeded 10%, but has experienced high growth in its stock market.