Third China A-Shares ETF Debuts in London

ETF Trends

ETF Securities, the ETF issuer known in the U.S known primarily for its lineup of commodities products, today launched the ETFS-EFund MSCI China A GO UCITS ETF on the London Stock Exchange, marking the third A-shares ETF to list in London.

ETF Securities, the issuer behind well-known U.S-listed products such as the ETFS Physical Silver Shares (SIVR) and the ETFS Physical Palladium Shares (PALL) , is partnering with E Fund on the ETFS-E Fund MSCI China A GO UCITS ETF.

The London-listed ETF tracks the MSCI China A Index. That is the same underlying index that serves as the benchmark for the KraneShares Bosera MSCI China A ETF (KBA) . KBA debuted in March, becoming the third U.S.-listed ETF to offer direct access to China’s A-shares markets. [A New ETF Entry to Mainland China]

The largest U.S.-listed A-shares ETF is the db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) , which debuted in November. In January, Deutsche Asset & Wealth Management launched a London-listed equivalent of ASHR.

The ETFS-E FUND MSCI CHINA A GO UCITS ETF is denominated in renminbi and trades in London in British pounds and U.S. dollars, according to statement issued by ETF Securities. E Fund is China’s second-largest holder of Renminbi Qualified Foreign Institutional Investor quotas. The new EFT will also trade on Deutsche Boerse and NYSEEuronext Amsterdam.

“London’s role as an international financial centre is mirrored in its ability to provide investors a product range providing access to asset classes around the world. This new China A Shares ETFs, listed on London Stock Exchange 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 for the London Stock Exchange, said in the statement.

In the U.S., the Market Vectors China AMC A-Share ETF (PEK) is the other ETF that offers access to physical A-shares stocks while the PowerShares China A-Share Portfolio (CHNA) uses derivatives to track the stocks listed in Shanghai and Shenzhen. PowerShares is seeking approval to transition CHNA to equities away from a basket of derivatives. [More A-Shares ETFs Coming]

ASHR had over $150 million in assets under management as of May 16, according to Deutsche data.

ETF Trends editorial team contributed to this post.

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