Commerzbank, the German bank and asset manager, has become the first issuer to list exchange-traded funds on the China Europe International Exchange (CEINEX), a newly launched exchange designed to promote greater availability of Chinese renminbi financial instruments, including ETFs, to European investors.
Commerzbank’s latest ETF launch provides exposure to the 50 leading Shanghai-listed Chinese A-Shares.
The Bank of China International (BOCI) Commerzbank – Shanghai Stock Exchange 50 A Share Index UCITS ETF (BOC1) and the Commerzbank CCBI RQFII Money Market UCITS ETF (CCMR) have begun trading on CEINEX today, marking the launch of the exchange, which was developed as a joint venture between Shanghai Stock Exchange (SSE), Deutsche Börse and China Financial Futures Exchange.
Thomas Timmermann CEO of Asset Management at Commerzbank Corporates & Markets commented: “As the onshore Chinese markets are opening up to international investors, the market will continue to need investment solutions across a variety of asset classes. By launching these products now Commerzbank and its partners are keeping up to date with their client’s requirements.”
He added: “These ETFs provide offshore investors the opportunity to invest in the mainland Chinese securities markets, via a listed and regulated European product.”
The Bank of China International (BOCI) Commerzbank – Shanghai Stock Exchange 50 A Share Index UCITS ETF is a newly launched fund which invests directly in the physical A-Shares of Chinese firms via the Shanghai-Hong Kong Stock Connect. It aims to track the performance of the SSE50 Index which consists of 50 most representative stocks from Shanghai security market. Commerzbank have partnered with BOC International, Bank of China’s investment banking arm, and China Construction Bank International, the bank’s investment services flagship, to launch the fund. The total expense ratio of the ETF is 0.84%.
According to Commerzbank, the internationalisation of Renminbi (‘RMB’) continues to gain momentum; however, options for onshore RMB investments outside of China are still limited. Commerzbank, with expertise as a provider of listed products in Europe and a leading ETF market maker in Europe and Hong Kong, aims to provide access to onshore RMB investments efficiently and effectively by partnering with two of the most experienced institutions in the Chinese markets.
The Commerzbank CCBI RQFII Money Market UCITS ETF was first launched on the London Stock Exchange on 25 March 2015. The ETF provides offshore investors the opportunity to use offshore renminbi deposits to invest in the mainland securities markets, with the aim of maintaining capital value and generating returns linked to the RMB money markets. The cross-listing of the fund on CEINEX facilitates access to the fund from a wider range of investors. The total expense ratio of the ETF is 0.65%