- New CSOP FTSE China A50 ETF started trading on 12th March 2015 on NYSE Arca
- Reflects growing investor demand for access to one of the world’s largest and fastest expanding economies
- Reinforces FTSE as leading provider of Chinese market equity indices
FTSE Group (“FTSE”), the global index provider, today announced it has licensed the FTSE China A50 Net Total Return Index to CSOP Asset Management Limited (“CSOP”) to serve as the underlying benchmark for the CSOP FTSE CHINA A50 ETF. The new ETF, which offers both retail and institutional investors direct exposure to the China A Shares market in North America, is the first in the US to track the flagship FTSE China A50 Index.
The FTSE China A50 Index comprises the largest 50 A Share companies by full market capitalisation listed on the Shanghai and Shenzhen Stock Exchanges, and is a tool used by both domestic and international investors in a range of QFII/RQFII investment portfolios. FTSE is the leading provider of China-focused indices with ETFs tracking the FTSE China Index Series accounting for approximately US$22 billion AUM.
The Renminbi Qualified Foreign Institutional Investor (RQFII) programme allows institutional investors with offshore Renminbi deposits to invest back into the domestic Chinese market. Hong-Kong based CSOP is currently the largest RQFII manager of A Shares globally. The CSOP FTSE China A50 ETF series has listings in Hong Kong, the U.K. and now the U.S.
Donald Keith, Deputy Chief Executive, FTSE Group, said:
“Our strong track record of providing China-linked indices enables us to work with some of the largest asset management firms and ETF issuers in the world. The listing of a new China A Shares ETF will allow North American investors to have direct exposure to one of the
world’s fastest growing economies, and reinforces FTSE’s leading position in both markets. We worked closely with CSOP to launch their first ETF on our London Stock Exchange last year and are pleased to develop this relationship even further.”
Chen Ding, CEO of CSOP, added:
“With FTSE China A50 Index’s 70% market share in the offshore China A-shares ETF market, our new CSOP FTSE China A50 ETF represents a milestone for many US investors, allowing them to directly access one of the world’s most important equity markets. We have seen growing demand from North America to increase their exposure in China and our new fund will enable this through a transparent product now publicly available to trade. We are delighted to partner again with FTSE.”
The CSOP FTSE China A50 ETF traded on the New York Stock Exchange is denominated in USD and trades in USD. There are now 117 ETFs in North America that track FTSE benchmarks.
China A-shares are not currently included in FTSE’s standard global benchmarks. The region has been on FTSE’s Watch List since 2005 and FTSE’s Country Classification Advisory Committee has been able to monitor the gradual and positive market developments on a number of key areas of FTSE’s Quality of Markets Matrix. The FTSE China Index Series reflects FTSE’s transparent methodology, which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules. More information on FTSE China Index Series is available at: http://www.ftse.com/products/indices/china