|db X-Trackers Brings China ETF To London|
|July 19, 2012 11:35 (CET)|
Deutsche Bank has listed its db X-trackers CSI300 Index ETF on the London Stock Exchange, more than two years after the product debuted on the Singapore Exchange.
At the time of its Asian launch, back in March 2010, it was significant for being the issuer’s first attempt at marketing new products to an Asian market before bringing them to Europe. As it launches in the European market, the ETF already has assets under management of almost $US350 million.
The ETF tracks the CSI300 Index, which is made up of 300 A shares listed on the Shanghai and Shenzhen stock exchanges, screened for both market capitalisation and liquidity.
China’s A share market has traditionally proven difficult for investors to access and they could only trade with a qualified foreign institutional investor licence. Although foreign buyers can access H shares and red chips traded in Hong Kong, A shares make up over 75 percent of China’s market capitalisation, so are more desirable to those looking for exposure to China.
“The China Securities Regulatory Commission is expanding its quotas for foreign investment, signalling a willingness by the Chinese government to open up China's capital markets further to international investors. But for many investors it remains a difficult market to access. The db X-trackers CSI300 Index ETF can bridge that gap,” said Manooj Mistry, head of db X-trackers for the UK.
The ETF is also listed in Hong Kong. It uses synthetic replication and has a total expense ratio of 0.50 percent.