CTBC launches offshore China equity ETFs in Taiwan

Nov 1st, 2018 | By | Category: Equities

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Taipei-headquartered CTBC Investments has launched a pair of ETFs on the Taiwan Stock Exchange (TWSE) that provide unleveraged and leveraged exposure to China’s offshore equity market.

CTBC Investments launches China equity ETFs in Taiwan

The ETFs provides unleveraged and leveraged exposure to Chinese firms listed either in Hong Kong or in the US.

The ETFs are CTBC’s first foray into the ETF space.

The CTBC MSCI China Free 50 ex A and B ETF (00752 TT) tracks the MSCI China Free 50 ex A and B Index, consisting of the largest 50 Chinese companies listed in either Hong Kong or the US. Constituents are weighted by free float market capitalization.

Tencent and Alibaba dominate the index with weights of 20.9% and 17.1% respectively. The next largest constituents are China Construction Bank (6.5%), Baidu (4.6%) and Industrial & Commercial Bank of China (4.3%).

The second fund, the CTBC MSCI China Free 50 ex A and B Daily Leveraged 2X ETF (00753L TT), is aimed at sophisticated investors who are prepared to accept higher risk in order to magnify their potential returns. The ETF provides twice the daily return on the MSCI China Free 50 ex A and B Index.

Both funds come with estimated total expenses of 1.17% pa.

The new launches bring the total number of ETFs listed on TWSE to 111.

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