WisdomTree introduces yuan share class for S&P China 500 ETF

Sep 1st, 2016 | By | Category: Equities

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Exchange-traded fund provider WisdomTree has introduced a yuan share trading class for its recently launched London Stock Exchange-listed ICBCCS WisdomTree S&P China 500 UCITS ETF (see WisdomTree and ICBC launch all-class China ETF). The share class will broaden investors’ options for exposure to the world’s second largest economy, and is reflective of the ongoing internationalisation of the Renminbi.

WisdomTree introduces yuan share class for S&P China 500 ETF on LSE

The WisdomTree S&P China 500 UCITS ETF is now offered in US-dollar, British pound or Chinese yuan share classes.

Nizam Hamid, ETF Strategist at WisdomTree Europe, said: “At WisdomTree, we are in the business of offering the most efficient means of accessing the global markets. This latest ETF opens up even more opportunity for European investors wanting to access the full China growth story in a single trade. With the addition of a yuan listing, investors now get even more choice when it comes to their own investing preferences. China remains a critical exposure having the highest weight in emerging market indices.”

The ETF tracks the performance of the S&P China 500 Index, which offers broad coverage of all Chinese equity classes.The float-adjusted market cap-weighted index measures the performance of the 500 biggest and most liquid Chinese firms across all Chinese share classes, including A-shares and offshore listings such as those trading on the Hong Kong Stock Exchange – known as H-Shares.

“China’s onshore market is large and dynamic with unique growth characteristics, which is highly attractive to investors,” said Alex Matturri, Chief Executive Officer at S&P Dow Jones Indices. “We are delighted to work with both WisdomTree and ICBC Credit Suisse to licence our innovative and transparent S&P China 500 Index solution which comprises the largest and most liquid companies in China.”

The fund, which is physically replicated, is the first UCITS ETF to provide access to all China equity share classes. The yuan-trading exposure (Ticker: CHIC) adds to the US dollar (Ticker: CHIN) and British pound (Ticker: CHIP) share classes that already existed. Each share class has a total expense ratio of 0.75%.

Laura Lui, Head of Index & Quantitative Investment of ICBC Credit Suisse Asset Management (International) said: “The launch of the yuan S&P China 500 ETF in addition to the dollar and pound listing demonstrates our commitment to provide pioneering solutions with diversified, transparent and efficient tools for accessing China. The internationalisation of Renminbi has always been one of the key subjects of global investors, and the newly launched ETF is another milestone for a Renminbi-denominated, total China solution.”

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