Beijing’s heightened scrutiny of overseas portfolio investment and tax practices has yet to significantly weaken mainland investors’ demand for legitimate cross-border investments, according to China International Capital Corporation (CICC).The Beijing-headquartered investment bank is still seeing “robust” demand from its domestic clients, though the long-term effects of the policy tightening will need to be closely monitored, said Qiao Bo, head of investment products and solutions and a managing director at CICC, at an event in Hong Kong on Thursday.“Global diversification becomes essential to lower overall portfolio volatility by including overseas assets,” Qiao added.Beijing has launched a string of measures to tighten control over cross-border investment activities in recent weeks, including a clampdown on firms helping mainland clients to evade capital controls and invest in overseas stocks.The latest move came on Friday, when the Chinese government announced it would impose personal-income taxes on offshore trusts, closing a loophole frequently used by wealthy families to avoid tax.While the campaign has sparked some concern in Hong Kong, CICC expressed optimism about the city’s fund development prospects and its open-ended fund company (OFC) structure.“We have strong confidence in CICC’s asset management scale and business, expecting double-digit annual growth. This is based on our long-term positive view of Chinese managers going global and cross-border capital flows between the two markets,” said Qingchuan Liu, the firm’s head of asset custody services and also a managing director.