Harvest Global Investments debuts China A-Shares ETF based on MSCI China A Index

Oct 14th, 2012 | By | Category: ETF and Index News

MSCI Inc’s MSCI China A Index has been licensed as the underlying for the Harvest MSCI China A Index ETF, a new exchange-traded fund (ETF) listed on the Hong Kong Stock Exchange.

Harvest Global Investments debuts China A-Shares ETF based on MSCI China A Index

The MSCI China A Index tracks shares listed on the Shanghai and Shenzhen exchanges.

Launched by Hong Kong-based Harvest Global Investments, the fund offers direct physical access to China A-shares and has been introduced under the Renminbi Qualified Foreign Institutional Investors (RQFII) scheme.

The tightly-controlled RQFII scheme allows foreign investors to hold A-shares, shares in mainland China-based companies that trade on Chinese domestic stock exchanges such as the Shanghai Stock Exchange and the Shenzhen Stock Exchange. China A-shares are typically only available for purchase by citizens of mainland China.

Henry Fernandez, Chairman and CEO of MSCI Inc, said: “We are delighted to have licensed our flagship MSCI China A Index to Harvest Global Investments for the creation of the Harvest MSCI China A Index ETF. The MSCI China A Index features broad, diversified and liquid coverage of the domestic China A shares opportunity set.”

Henry Zhao, Chairman of Harvest Global Investments, added: “Harvest strongly believes that introducing the first ETF based on the MSCI China A Index demonstrates our commitment to offering global investors diversified access to the growth opportunities of the domestic China A shares market. The breadth and depth of the MSCI China A Index differentiates it from the other indices currently available for the China equity market.”

The MSCI China A Index is constructed based on the same methodology as the MSCI Global Investable Market Indices. The index targets 85% free float market-capitalisation coverage and captures large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges. The current number of constituents is 541.

The Harvest MSCI China A Index ETF becomes one of a limited number of physically-replicated Hong Kong-listed ETFs rolled out under the RQFII scheme. Others include the ChinaAMC CSI 300 Index ETF from China Asset Management and the CSOP FTSE China A50 ETF from CSOP Asset Management.

The fund trades in RMB under the ticker 83118 and in HKD under 03118.

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