Exchange Fund Investment (EFI) has started the selection process for fund managers for its proposed $70 billion unit trust.
United States-based State Street Bank, HSBC and Jardine Fleming are understood to be among those short-listed to manage the fund, which is scheduled to be launched at the end of the year.
The move to create the unit trust marked a step forward for EFI in disposing of up to $70 billion of the $212 billion worth of shares in the Government's portfolio.
Director Eric Li Ka-cheung confirmed that the EFI had started interviewing some financial institutions but refused at this stage to disclose the candidates on the short list.
He said the EFI would like to choose a fund manager who had experience in handling products similar to the proposed EFI unit trust.
He said EFI also required the fund managers to have a strong commitment to the Hong Kong market.
'We want to hire someone who has a good understanding of the local market,' Mr Li said.