Mainland third gold ETF listed on the Shenzhen Exchange

18 December 2013   Category: News, Asia, China   By Asia Asset Management

E Fund Gold ETF, the third mainland gold-linked ETF, has made its IPO debut on the Shenzhen Stock Exchange on December 16, raising a total of 500 million RMB (US$79.3 million).  Transaction volume in the first trading day was around 170 million RMB.

China Securities Regulatory Commission (CSRC) has opened up the commodity ETF market with the approval of physically backed gold ETFs. HuaAn and Guotai are the first movers which launched the HuaAn Gold ETF and Guotai Gold ETF in late July although the funds’ total AUMs deflated 86% and 65% respectively in August as a result of market redemption.    
Another asset management giant Bosera Asset Management is set to jump on the gold ETF bandwagon; even so, demand may suffer no thanks to the recent slide in the price of the precious metal.

E Fund is one of the leading ETF sponsors in China with a product mix of 19 ETFs and feeder funds, running a gamut from QDII cross-border ETF to small-cap and sector ETFs.