London-based ETF Securities and Chinese asset manager, E-Fund Management, have partnered to offer a new exchange traded fund (ETF) on the London Stock Exchange (LSE).
This is the third physical ETF to list on the LSE this year that offers institutional and retail investors access to the China A-shares market. Trading in Chinese yuan and Hong Kong dollars for ETFs was introduced on the LSE in Q1 2014.
The ETFs-E Fund MSCI China A Go Ucits ETF is denominated in renminbi and trades on London Stock Exchange in GBP and USD.
The new ETF “provides investors with the opportunity to have direct exposure to China, one of the world’s largest and fastest growing economies,” said Pietro Poletto, head of fixed income and ETFs, LSE.
The ETF tracks the MSCI China A index, which accoiding to Johnson covers the most comprehensive range of Chinese stocks, with less concentrated exposure to financials and large-cap state enterprises.
“The China A shares market is gaining ground with European investors and this product provides an exciting opportunity for those who wish to access this market,” said Matt Johnson, head of distribution Emea, ETF Securities.
The launch builds on London’s growing reputation as an offshore centre for renminbi trading.