Source and CSOP introduce euro trading line for China A-share ETF

May 29th, 2014 | By | Category: Equities

London-based exchange-traded fund provider Source and Hong Kong-based asset manager CSOP have introduced a euro trading line for their recently launched China A-shares ETF, the CSOP Source FTSE China A50 UCITS ETF.

Source and CSOP introduce euro trading line on Deutsche Börse (Xetra) for China A-share ETF

Source and CSOP have unveiled a euro trading line for the CSOP Source FTSE China A50 UCITS ETF. The Deutsche Börse-listed share class enables eurozone investors to trade the China A-shares fund in their local currency.

Listed on the Deutsche Börse (Xetra), the euro trading line allows euro-denominated investors to buy and sell the fund, which is linked to the FTSE China A50 Index, in their local currency via the ticker SMLC.

First launched on the London Stock Exchange with GBP (CHNP) and USD (CHNA) trading lines, the ETF was the first in Europe to offer direct exposure to China A shares.

Since its launch in January this year, the fund has raced to more than $360 million in assets owing to international investors’ preference for physical exposure to mainland China equities over offshore or synthetic alternatives.

China A shares are shares of Chinese domiciled companies, listed on mainland Chinese exchanges and denominated in Chinese renminbi (RMB). The market comprises around 1400 companies and is widely viewed as the most authentic Chinese equity market. It represents almost 4% of the global equity market but has been difficult to access, particularly for smaller investors.

The Source/CSOP ETF invests directly in China A shares under the Renminbi Qualified Foreign Institutional Investor (RQFII) quota scheme. Investors with RQFII status may, within their allocated quota, buy and sell A shares freely. Hong Kong-based CSOP is currently the largest RQFII manager of A shares globally and has been granted quota specifically for the collaboration with Source.

Chen Ding, CEO of CSOP, said: “There is clearly strong demand for Chinese equities across Europe. We are delighted to offer this ETF in a format that is more accessible for eurozone investors.”

Ted Hood, CEO of Source, added: “The CSOP Source FTSE China A50 UCITS ETF has been the largest ETF launch in Europe so far this year. It gives all investors – not just large institutions with their own investment quotas – direct access to one of the world’s most important equity markets.”

The fund is also listed on the SIX Swiss Exchange, for trading in USD.

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