ETF Securities, the ETF provider known primarily for its lineup of commodities funds, could be the next sponsor to introduce a China A-shares fund.
In a statement issued Sunday evening, ETF Securities and E Fund Management announced they have licensed the MSCI China A Index from index provider MSCI (MSCI) “as the basis for a proposed exchange traded fund.”
It is expected the product will be the first UCITS ETF listed in London tracking the MSCI China A Index. UCITS, or Undetakings for the Collective Investment of Transferable Securities, denotes funds that can be marketed in countries that are members of the European Union.
“As MSCI continues to evaluate the inclusion of Chinese A shares into its flagship Emerging Markets Index, we believe that working with them on this initiative will appeal to investors currently utilising this index as a benchmark,” said Matt Johnson, Head of Distribution EMEA, ETF Securities, in the statement.
The db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) is the dominant name among China A-shares ETFs. ASHR launched in November 2013, becoming the first U.S.-listed ETF offering access to Chinese stocks listed in Shanghai and Shenzhen. ASHR had $179.1 million in assets under management as of Feb. 21, according to issuer data.
Deutsche Asset & Wealth Management launched an ASHR UCITS equivalent in London in January and has previously said it hopes to list China A-shares ETFs across Europe. The unit of Germany’s Deutsche Bank has ETFs in France, Germany, Italy, Switzerland and the U.K. [London Listing for A-Shares ETF]
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.