LSE builds presence as premier listing venue for offshore RMB investments

Jul 29th, 2016 | By | Category: ETF and Index News

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London Stock Exchange (LSE) has welcomed a new China-focused exchange-traded fund from Hong Kong-based asset manager ICBC Credit Suisse (ICBCCS) and ETF provider WisdomTree. The ICBCCS WisdomTree S&P China 500 UCITS ETF (LSE: CHIN) is the tenth Renminbi Qualified Foreign Institutional Investor (RQFII) ETF to list on the LSE and the third RQFII product to launch in 2016, further cementing the city’s role as a leading venue for the listing of offshore RMB-denominated investment products.

LSE builds presence as premier listing venue for offshore RMB investments

The three RQFII ETFs listed in London in 2016 are the ICBCCS WisdomTree S&P China 500 UCITS ETF, the Fullgoal FTSE China Onshore Bank Bond ETF (LSE: RMB3) and the db X-trackers Harvest FTSE China AH 50 ETF (LSE: AH50).

Richard Tang, Chief Executive Officer, ICBCCS, said: “We are proud to announce the listing of the first ETF that tracks the S&P China 500 Index. The ETF combines exposure to both onshore and offshore China equity share classes which offers investors a diversified and transparent tool to access the broad China market efficiently. With access to the exposures of the top 500 Chinese corporations listed across multiple markets, we are delighted to launch this flagship China ETF in London.”

The ETF is the latest RMB-denominated investment product to be launched in London by a Chinese issuer. Other recent listings on the exchange in 2016 include the first Chinese sovereign RMB bond issued outside of China, RMB 5bn of short-term central bank notes from the People’s Bank of China, and $1bn in dual currency green bonds from the Agricultural Development Bank of China. Year-to-date, the LSE has seen 54 RMB bonds issued on its markets (of a total of 80 issued worldwide) from a variety of providers including China’s four major banks and China Development Bank.

The exchange also hosts ten RQFII ETFs providing direct exposure to Chinese A-share equities and fixed income markets. The three RQFII ETFs listed in London in 2016 were the ICBCCS WisdomTree S&P China 500 UCITS ETF, the Fullgoal FTSE China Onshore Bank Bond ETF (LSE: RMB3) and the db X-trackers Harvest FTSE China AH 50 ETF (LSE: AH50). In addition, a further nine ETFs offer direct exposure to China.

Pietro Poletto, Head of ETF and Fixed Income Markets, London Stock Exchange Group, added: “London is the world’s most international financial market and has established itself as the leading offshore centre for RMB-denominated products.

“Chinese issuers are increasingly looking to access European investors and today’s listing is the tenth RQFII ETF listed on London Stock Exchange and the third already this year. We are delighted ICBCCS has chosen to list this product in London and look forward to work with them as we continue to strengthen our ties with Chinese issuers”.

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