First mutual fund offering direct access to China

by: Ezra Marbach

The Wall Street Journal is reporting that Nikko Asset Management is poised to offer the first mutual fund that will allow foreigners direct access to China's vast but volatile domestic stock market.

The fund-management arm of Nikko Cordial Corp., one of Japan's major brokerage firms, plans to register a $200 million fund tomorrow with Japanese securities regulators, according to a person familiar with the situation. The fund intends to begin investing in China's local stock market by March.