Deutsche to unveil first US-listed China A-shares ETF

Nov 5th, 2013 | By | Category: Equities

Deutsche Asset & Wealth Management (DeAWM) is set to unveil the db X-trackers Harvest CSI 300 China A-Shares ETF (ASHR), an exchange-traded fund offering direct investment into China.

DeAWM to unveil first US-listed China A-shares ETF

DeAWM is to unveil the first US-listed China A-shares ETF.

The fund will be listed on NYSE Arca beginning Wednesday, November 6, 2013.

The fund will become the first US-listed ETF to provide investors direct equity exposure to the many Chinese sectors and companies that are available exclusively via the China A-shares market, in which foreign investment has historically been limited.

Jerry Miller, Head of Asset & Wealth Management Americas at DeAWM, said: “As a truly global bank, we are uniquely positioned to provide global access and perspective to US investors. Unprecedented and sophisticated products such as ASHR exemplify our strategic vision for the exchange-traded products business in the Americas.”

In order to bring the fund to market, DeAWM has partnered with Harvest Global Investments, a wholly owned subsidiary of Deutsche Bank Group’s asset management joint venture in China, Harvest Fund Management.

Dr. Henry Zhao, Chairman of Harvest Global Investments, commented: “Harvest is very pleased to collaborate with Deutsche Asset & Wealth Management to list the db X-trackers Harvest CSI 300 China A-Shares Fund on the New York Stock Exchange. ASHR will provide American investors with direct access to China A-shares with the added benefit of our depth of experience as one of the most established Chinese fund management companies.”

Harvest Fund Management is the second-largest asset management company in China, with in excess of $47 billion in assets under management. The company’s status as a Renminbi Qualified Foreign Institutional Investor (RQFII) enables it to obtain a RQFII quota on behalf of ASHR.

Martin Kremenstein, Head of Passive Asset Management for DeAWM Americas, added: “ASHR will provide American investors with direct access to a key international market for the first time, as other ETFs that seek to provide exposure to China A-shares must do so indirectly via derivatives or other instruments. This milestone ETF demonstrates our commitment to introducing first-of-their-kind products that use innovative strategies to fill previously unmet gaps in investor demand.”

China A-shares are equity securities issued by companies incorporated in mainland China, denominated and traded in the Chinese renminbi. Controls imposed by the Chinese government limit direct investments in A-shares, and only a very restricted pool of foreign investors have been approved as Qualified Foreign Institutional Investors or Renminbi Qualified Foreign Institutional Investors by the China Securities Regulatory Commission.

The fund seeks to track the CSI 300 Index, which includes the 300 largest and most liquid securities trading on the Shanghai and Shenzhen Stock Exchanges.

DeAWM’s US exchange-traded products platform was launched in 2006 and currently has $12 billion in assets under management. Globally, DeAWM is the fifth largest provider of ETPs with approximately $66 billion in assets under management.

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