E Fund, one of the largest asset managers in China, has partnered with ETF Securities to launch a physical exchange-traded fund (ETF) that tracks shares listed in Chinese mainland exchanges.
The firms say the product is the first Ucits ETF to track the MSCI China A index, which includes 460 stocks across a range of sectors.
Domiciled in Ireland, the ETF is listed in London, Germany and Amsterdam, and has a total expense ratio of 0.88%.
E Fund has a quota under the renminbi qualified foreign institutional investors (RQFII) programme, which allows Chinese firms to establish Hong Kong-based, renminbi-denominated funds to invest in the mainland.
“We are delighted to be working on this product with E Fund, the second largest RQFII quota holder with approximately 27 billion renminbi (€3.2 billion),” says Matt Johnson, head of distribution for Europe, Middle East and Africa, ETF Securities.
ETF Securities says shares in the China A index are at almost their cheapest point, in terms of price/earnings ratios, since the 2008 financial crisis.
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