CSOP’s physical China A-share RQFII ETF tops rankings

Sep 24th, 2012 | By | Category: Equities

The recently launched CSOP FTSE China A50 RQFII ETF (82822) is now the largest Renminbi Qualified Foreign Institutional Investors (RQFII) exchange-traded fund (ETF), according to FTSE Group, the fund’s benchmark provider.

CSOP Asset Management’s First RQFII exchange-traded fund (ETF) tops rankings

The physically-replicated CSOP FTSE China A50 RQFII ETF (82822) tracks the 50 largest A-Share companies listed on Shanghai and Shenzhen Stock Exchanges.

The initial RQFII quota of RMB 5 billion was allocated for IPO on 28 August and was fully taken up on the same day, establishing the CSOP FTSE China A50 RQFII ETF as the largest RQFII ETF, with assets of $771.1m on the first day of trading.

A further RMB 2 billion was granted by the State Administration of Foreign Exchange for release on 12 September, and creation of the units of the fund resumed immediately.

The fund is the first RQFII ETF from CSOP Asset Management, a Hong Kong-incorporated subsidiary of China Southern Asset Management, one of the top five asset managers in China.

Ding Chen, CEO of CSOP, said:  “This launch has been more successful than anticipated and demonstrates the continuing rapid growth in international demand for China-related investments. At the same time it accelerated the pace of the internationalisation of the Renminbi.”

The CSOP FTSE China A50 ETF is the first physical ETF based on the FTSE China A50 Index and offers investors the most direct channel for participation in the China blue-chip market.

FTSE is the leader in China-themed indices with over 60% of assets under management in Chinese ETFs benchmarked to the FTSE China Index Series listed globally. Together with the long-established and highly successful synthetic iShares FTSE A50 China Index ETF (2823), these two ETFs account for 72.51% of all A-Share ETF assets listed in Hong Kong.

Jessie Pak, Managing Director, Asia, FTSE Group, said: “We are delighted at the success of our partnership with CSOP Asset Management and look forward to continuing to work with them.  With established agreements with Shanghai and Shenzhen Stock Exchanges, and a strong track record providing optimal China index solutions, the FTSE China Index Series has become the natural choice for ETF issuers globally who wish to create China themed investment products.”

The FTSE China A50 Index represents the 50 largest A-Share companies listed on Shanghai and Shenzhen Stock Exchanges and is tracked by both domestic investors and internationally through a range of QFII investment portfolios.

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