London Stock Exchange welcomes third physical China A-share ETF

May 19th, 2014 | By | Category: Equities

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The London Stock Exchange has welcomed the listing of its third physical China A-share ETF, the ETFS-E Fund MSCI China A GO UCITS ETF (CASH).

London Stock Exchange gets third physical China A-share ETF

ETF Securities’ new fund becomes the third physical China A-share ETF to list on the London Stock Exchange this year.

The new ETF, which has been launched by ETF Securities in partnership with Hong Kong-based E Fund Management, follows the listing of physical China A share ETFs by Deutsche Asset & Wealth Management and Source.

The ETF is linked to the MSCI China A Index, an index tracking large and mid-cap domestic renminbi-denominated stocks listed on the Shanghai and Shenzhen stock exchanges.

Commenting on the launch, Pietro Poletto, Head of Fixed Income and ETFs at London Stock Exchange Group, said: “London’s role as an international financial centre is mirrored in its ability to provide investors a product range providing access to asset classes around the world. This new China A Shares ETF, listed on London Stock Exchange, provides investors with the opportunity to have direct exposure to China, one of the world’s largest and fastest growing economies.”

Matt Johnson, Head of Distribution EMEA at ETF Securities, added: “We are pleased to be listing Europe’s first physical UCITS ETF to track the MSCI China A Index on the LSE today. The China A-shares market is gaining ground with European investors and this product provides an exciting opportunity for those who wish to access this market. The MSCI China A index covers the most comprehensive range of Chinese stocks, with less concentrated exposure to financials and large-cap state enterprises.”

The fund is denominated in RMB and trades on London Stock Exchange in GBP and USD. It has a total expense ratio of 0.88%.

London is at the forefront of RMB development and has recently introduced CNY and HKD trading for ETFs on London Stock Exchange supported by clearing and settlement.

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