Euroclear chosen for China equity ETF listing in Europe

ICBC Credit Suisse Asset Management International (ICBCCS) has chosen Brussels-based Euroclear Bank for clearing and settlement of its first internationally listed China equity ETF.

The exchange-traded fund, the ICBC CS WisdomTree S&P China 500 Ucits ETF, will be domiciled under Luxembourg law. It will be listed and traded in US dollars, sterling and renminbi on the London Stock Exchange, and be settled directly in the international central securities depository by Euroclear Bank.

ICBCCS was established in 2005 and was the first bank-affiliated asset management subsidiary set up in Mainland China. ICBCCS and its subsidiaries had more than 960 billion renminbi (€129 billion) in assets under management as of March 2016.

“Our international ETF model has been riding a wave of momentum over the past year to distribute China products to our clients. It is an honour to be the infrastructure provider of choice to support ICBCCS’s ambition to distribute its first China equity ETF, not only in Europe but also globally,” said Mohamed M'Rabti, deputy head of FundsPlace, Euroclear.

In the first half of this year, Euroclear held €27 trillion in assets for clients.

Euroclear appear to be on a run as last month it was chosen to be settling the first ETF by an independent Chinese issuer in Europe directly on Euroclear bank.

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