Mitsubishi launches China A share ETF in Japan

Jun 26th, 2019 | By | Category: Equities

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Japanese asset manager Mitsubishi UFJ Kokusai AM has launched the MAXIS HuaAn China Equity (SSE 180 index) ETF (2530 JP) on Tokyo Stock Exchange.

Mitsubishi launches China A share ETF in Japan

The fund provides exposure to 180 large- and mid-cap companies listed on Shanghai Stock Exchange.

The fund provides exposure to large- and mid-cap China A share companies – renminbi-denominated stocks traded in mainland China – by tracking the SSE 180 Index.

The SSE 180 index selects its constituents from the total universe of A share stocks listed on Shanghai Stock Exchange.

Each firm in the universe is assigned to one of ten industry classifications based on the Global Industry Classification Standard (GICS) created by MSCI and Standard & Poors.

Each stock is then ranked within its industry classification based on an analysis of four factors: total market capitalization, free-float market capitalization, trading values, and turnover ratio.

The methodology then selects the highest ranking stocks from each industry to form a final index consisting of 180 constituents. The number of stocks selected from each industry is determined by that industry’s proportion of float-adjusted market capitalization relative to the total universe.

Constituents are weighted by float-adjusted market capitalization. The index is reconstituted and rebalanced semi-annually.

The fund comes with a management fee of 0.78%.

There are currently two other ETFs listed in Japan that target the large- and mid-cap China A share market, both of which are linked to the CSI 300 Index. The CSI 300 reflects the performance of largest 300 stocks listed across both the Shanghai and Shenzhen stock exchanges. The cheapest, from Nikko Asset Management, is the China A Share (Panda) E Fund (1322 JP) at 0.50% pa.

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