Bosera Asset Management has launched a new fixed income ETF in Hong Kong providing exposure to money market instruments denominated in Chinese renminbi.

The ETF provides exposure to money market instruments denominated in Chinese renminbi.

The Bosera RMB Money Market ETF has been listed on the Stock Exchange of Hong Kong in Hong Kong dollars (3192 HK) and Chinese renminbi (83192 HK).

The fund invests in investment-grade, renminbi-denominated, short-term deposits and high-quality money market instruments issued by governments, quasi-governments, international organizations, financial institutions, and corporations.

Eligible money market instruments include commercial papers, certificates of deposits, short-term notes, and commercial bills, while up to 15% of the portfolio’s assets may be allocated to asset-backed securities including mortgage-backed securities.

The ETF may invest up to 30% of its assets in short-term deposits and high-quality money market instruments that are denominated in currencies other than the Chinese renminbi. Bosera will hedge foreign currency risk relative to the Chinese renminbi on a regular basis.

The fund will maintain a weighted average maturity below 60 days and a weighted average life not exceeding 120 days.

The ETF has estimated ongoing charges over a year of 0.55%.