Franklin Templeton Investments Corp. Monday launched a new fund for Canadian investors hoping to cash in on China’s surging economy.

The Templeton China Tax Class Fund will invest in companies based in China, Hong Kong and Taiwan as well as companies hoping to benefit from growth in these economies.

Mark Mobius, a veteran emerging markets manager and managing director of Singapore-based Templeton Asset Management Ltd, will manage the fund. It will use a value investment style.

The fund is the latest entry in a growing list of funds focusing on China that includes AGF China Focus Class, Talvest China Plus, Excel China, and HSBC Chinese Equity.

Mobius, with more than 30 years of experience investing in Asia and other emerging markets, has managed China-specific mandates since 1994. Two years ago, his Templeton Emerging Markets Fund was named best regional equity fund at the Canadian Investment Awards.

The China Tax Class Fund is part of Franklin Templeton’s Tax Class structure, which allows investors to switch between funds and portfolios while deferring taxable events until they redeem from the structure.

According to the prospectus, it will invest in companies that derive at least 50% of their profits or sales from goods or services sold or produced in China, Hong Kong or Taiwan; or that have at least 50% of their assets in China, Hong Kong or Taiwan. It may also invest in companies elsewhere, provided the advisor expects those issuers to benefit from developments in the economy of China, Hong Kong or Taiwan. It is aimed at medium to long-term investors willing to accept high investment risk.

The fund’s minimum initial investment will be $500. The management fee, not counting fund expenses, will be 2.5% for the A series shares, and a full percentage point lower for the F series. Fees on the O series shares will be negotiable.