ETF Securities Launches Physical China A Share ETF

·  First physical UCITS ETF in Europe to track the MSCI China A Index ·     Highly diversified index that provides most balanced sector coverage of large and mid-cap locally listed stocks ·     China A shares  are generally at their cheapest since 2008 global financial crisis……

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ETF Securities has partnered with E Fund to launch a physical China A Share ETF. ETFS-E Fund MSCI China A GO UCITS ETF has been listed on the London Stock Exchange, Deutsche Boerse and NYSE Euronext Amsterdam. It is the first UCITS ETF to track the MSCI China A Index.

The MSCI China A Index is designed to reflect the most comprehensive investment opportunity set of Chinese companies with A-share listings on the Shanghai or Shenzhen Stock Exchanges.

“As the opening of the China domestic equity market accelerates, investors are looking for greater access to the region and the MSCI China A Index provides a basis for passive products linked to the A shares market,” said Deborah Yang, Managing Director and Head of the MSCI Index Business in EMEA and India. “We are pleased to work with ETF Securities  as  they  introduce  this  new  MSCI  index-linked  ETF  that  will  give  European investors direct access to one of the most watched equity markets.”

Matt Johnson, Head of Distribution EMEA, ETF Securities comments: “ETFS-E Fund MSCI China A GO UCITS ETF aims to track the performance of the MSCI China A Index that comprises over 460 Chinese stocks and provides more diversified sector coverage than other China A indices which typically have a high concentration in fewer sectors and stocks.” “We are delighted to be working on this product with E Fund, the second largest RQFII Quota holder with approximately RMB27 billion. As one of China’s top asset managers, they have extensive experience in the industry, having previously launched China A Share ETFs in China.”

Ko Tseng, Managing Director, E Fund Management (HK) Co., Ltd. adds: “The attractive China A shares market is gaining much ground with global investors. E Fund is pleased to be working with ETF Securities to launch ETFS-E Fund MSCI China A GO UCITS ETF which gives a clear measure and representation of this segment. This comprehensive and exciting new ETF marks a significant step for European investors who wish to access the opportunities provided by this market”.

Despite  periodic  fears  of   a  hard  landing   and  credit   crisis  in  China,  China  had managed to maintain a healthy pace of growth in 2013. China A Shares as measured by the MSCI China A Index, are now close to the cheapest (in PE terms) they’ve been since the worst part of the 2008 global financial crisis. With  the  Chinese  government  committed  to  economic  reform  and  financial liberalisation,  economic  growth  stabilizing in a more sustainable 7-8% range and China’s equity market capitalisation still low relative to the size and importance of its economy, ETF Securities believes China A shares have excellent long-term prospects.

ETFS-E Fund MSCI China A GO UCITS ETF is the first ETF to be launched on ETF Securities’ CANVAS platform since it was introduced in September 2013. Further products are expected to be launched on CANVAS in 2014.

Product information

Source: ETFWorld.co.uk