Invesco PowerShares unveils China A-shares ETF based on SGX futures

Oct 13th, 2013 | By | Category: Equities

Invesco PowerShares, a leading global provider of exchange-traded funds, has announced the launch of the PowerShares China A-Share Portfolio ETF (CHNA) on the NYSE Arca.

Invesco PowerShares unveils China A-shares ETF based on SGX futures

SGX FTSE China A50 Index Futures are the most liquid offshore exchange-traded vehicle providing exposure to China A-Shares market.

The ETF is the first to provide exposure to the China A-shares market by investing primarily in FTSE China A50 Index Futures listed on the Singapore Exchange (SGX).

The FTSE China A50 Index is a free-float adjusted, liquidity-screened index composed of the largest 50 A-share companies as determined by market capitalisation. Major constituents include China Minsheng Banking, Ping An Insurance, China Merchants Bank, Industrial Bank, and Shanghai Pudong Development Bank.

China A-shares are securities issued by companies that are incorporated in mainland China and that trade in Renminbi on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.

Lorraine Wang, Invesco PowerShares global head of ETF products and research, said: “US investors currently have very limited access to China’s domestic A-Shares market, which embodies the amazing growth story of the world’s second largest economy by GDP. The PowerShares China A-Share Portfolio (CHNA) is uniquely designed to provide a liquid, efficient and cost-effective alternative to direct investments in China A-Shares.”

Michael Syn of the Singapore Exchange (SGX), said: “We are very excited to work with Invesco PowerShares on this landmark investment vehicle allowing US investors to allocate and diversify their portfolios into Asia’s dominant growth engine. The SGX FTSE China A50 Index Futures is the only offshore futures on the China A-shares market without Qualified Financial Institutional Investor (QFII) requirements, and is the most liquid offshore exchange-traded vehicle providing exposure to China A-Shares market.”

SGX FTSE China A50 Index Futures provide an investable asset with high correlation to the onshore China market and offering 16.5 hours of trading each day. The contract has attracted significant attention from investors, and liquidity and volume continue to soar. Daily average volumes are now in excess of 80,000 contracts.

The fund has a management fee of 0.50%.

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