Germany’s $40 Billion Pension Gives Mandate to China Stock Fund

A German pension fund has tapped a Chinese firm’s Hong Kong arm to help it invest in local stocks, in a rare move among global allocators that have been cautious about gaining exposure to the nation’s equities.

KZVK, which manages €34.1 billion ($40 billion), gave $50 million to Fullgoal Asset Management (HK) Ltd. in the second quarter, according to people with knowledge of the matter. The mandate is to invest in Chinese equities listed in Hong Kong, the mainland and the US, the people said, asking not to be identified as the information is private.