Huatai-PineBridge CSI 300 ETF raises $5.3 billion in IPO

May 21st, 2012 | By | Category: Equities

Huatai-PineBridge, a joint venture between asset manager PineBridge Investments and broker Huatai Securities, has listed its Mainland China equities ETF, the Huatai-PineBridge CSI 300 ETF, on the Shanghai and Shenzhen Stock Exchanges, raising $5.3bn in the process.

Huatai-PineBridge CSI 300 ETF raises $5.3 billion in IPO

The Huatai-PineBridge CSI 300 ETF, which provides exposure to Mainland China equities, has been listed on the Shanghai and Shenzhen Stock Exchanges.

The fund represents the largest ETF IPO in the Mainland Chinese capital market since 2006 and is expected to be the second largest equity fund in the A-share (local) market. It also becomes the largest ETF debut globally of the year so far.

The Huatai-PineBridge CSI 300 ETF, which tracks the CSI 300 Index, is also the first cross-exchange product linking the Shanghai and Shenzhen Stock Exchanges, providing investors with exposure to a well diversified, broad-based index of stocks listed on both the Shanghai and Shenzhen Stock Exchanges.

The CSI 300 Index measures the performance of 300 of the largest and most liquid stocks traded on the Shanghai and Shenzhen stock exchanges. It is compiled by the China Securities Index Company.

The fund also matches the CSI 300 Futures Index, the first financial futures index in China, which was launched in April 2010. The CSI 300 ETF has a T+0 trading mechanism, which allows trading and settlement on the same day and enables investors to better capture ETF trading arbitrage opportunities.

Commenting on the launch, Han Yong, CEO, Huatai-PineBridge said: “The Huatai-PineBridge CSI 300 ETF has attracted significant demand and is a unique product that aims to provide investors with access to two markets – Shanghai and Shenzhen. We are extremely pleased with the very positive reception this IPO has received and it is a testament to our successful track record of managing ETFs in this market.”

David Jiang, CEO, PineBridge Investments, added: “The Huatai-PineBridge CSI 300 ETF firmly positions the company as one of the key players in the rapidly growing and exciting Chinese ETF market.  This innovative product, particularly the flexible trading mechanism, also represents a significant market milestone and is an important achievement for Huatai-PineBridge.”

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