Source and CSOP offer direct access to Chinese A shares via ETF on SIX Swiss exchange

Source and Hong Kong-based CSOP Asset Management (“CSOP”) are pleased to announce the listing of the CSOP Source FTSE China A50 UCITS ETF on the Swiss SIX Exchange with the ticker <CHNA SW>…..

Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy

Ted Hood – Source CEO

The fund was the first to offer direct exposure to the China A shares market in Europe and as a result of strong investor demand, the fund has gathered assets in excess of US$240 MN since its initial launch in January 2014.

The A shares market is made up of 1400 companies offering onshore, domestic securities and is widely viewed as the most authentic Chinese equity market. A shares are traded on mainland Chinese exchanges and denominated in Chinese renminbi (RMB). This market represents over 4% of the global equity market1 but has been difficult to access, particularly for smaller investors.

The CSOP Source FTSE China A50 UCITS ETF invests directly in 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 CSOP Source FTSE China A50 UCITS ETF.

“We are delighted to offer this ETF to Swiss investors,” says Chen Ding, CEO of CSOP. “There has been significant demand for our European ETF and we look to meet the requirements of the Swiss investor community with this listing.” CSOP’s existing FTSE China A50 ETF (2822 HK), listed in Hong Kong, is the largest and most actively traded RQFII ETF, with assets of RMB 20.9 billion (USD 3.4BN)2.

“This listing is a re-iteration of our commitment to the Swiss market,” adds Source CEO Ted Hood. “This addition to our current offering of 30 ETPs allows all Swiss investors – not just large institutions with their own investment quotas – to invest directly in one of the world’s most important equity markets. CSOP’s proven knowledge of the Chinese market and their experience managing one of the most successful RFQII ETFs allow us to offer an efficient, well-structured product.”
 
The ETF is denominated in RMB and trades on the SIX Swiss Exchange in USD and the London Stock Exchange in USD and GBP. Investors will be exposed to fluctuations in the exchange rate between RMB and the currency in which they are trading.

Source: ETFWorld.co.uk