China AM launches MSCI A-shares inclusion ETF

China AM launches MSCI A-shares inclusion ETF

China Asset Management (Hong Kong) has unveiled the ChinaAMC MSCI China A Inclusion Index ETF, tracking the MSCI China A Inclusion index.

The ETF has been listed on Hong Kong’s stock exchange on 7 February 2018, with a Hong Kong dollar and renminbi dual counter arrangement.

MSCI is set to progressively include China A-shares in the MSCI China index as well as in the MSCI Emerging Markets index and the MSCI ACWI index.

The MSCI China A Inclusion Index, composed of 232 positions (large caps A-shares investable through Stock Connect), was launched last October to follow the partial inclusion of A-shares in the MSCI Emerging Markets index.

“Global investors have embraced the positive evolvement in the accessibility and structure of the A-shares market. China has proven a sustainable economic growth and a stabilized RMB. Alongside with the inclusion in a leading benchmark, A-shares become almost impossible to be left out.” said Zhang Xiaoling, chief executive officer of ChinaAMC (HK).

“ChinaAMC being the thought leader in A-shares investment, we deliver best-in-class investment solutions to international investors. 2018 marks the 10th anniversary of our establishment in Hong Kong, we strive to deepen our penetration regionally and globally with our disciplined investment approach as well as on-the-ground research coverage through both passively and actively managed products. We are well positioned to identify investment opportunities for our investors in the fast-changing investment world,” he added.

Frederick Chu, head of ETF, ChinaAMC (HK), commented: “The gradual inclusion of A-shares into major world indices makes it mandatory to include A-shares in the portfolio. We expect the universe, though starting small, will grow gradually and becomes significant in the longer run. With our track records in broad-based A-shares beta ETFs, we aim to provide the easiest access for global investors to meet their allocation needs.”