Bosera picks FTSE China A50 Index for its first RQFII ETF

10 December 2013   Category: News, Asia, China, Hong Kong   By Asia Asset Management

Global index provider FTSE Group has announced the licensing of the FTSE China A50 Index to Bosera Asset Management (International) Co Limited (Bosera International) as the basis of its first Renminbi Qualified Foreign Institutional Investors (RQFII) ETF. The Bosera FTSE China A50 Index ETF listed on Hong Kong Exchanges and Clearing Limited (HKEx) on December 9.

ETFs representing China A-shares offer investors a channel to participate in the growing blue chip market in China. With a strong track record of providing China index benchmarks, the FTSE China Index Series has become a recognised choice for ETF issuers globally who wish to create China-themed investment products.

Jessie Pak, managing director, Asia, FTSE Group, said: “We are very pleased to be working with Bosera International to provide an essential tool for their use under the RQFII scheme and in developing opportunities in the Chinese market. FTSE is well known for its leadership position in China indices and we continue to work with our clients to advance our offerings to support market participants’ demand for access to China.”

Zhang Qiang, deputy chief executive officer of Bosera International, said: “With continuous support from our parent company – Bosera Asset Management Co Limited – Bosera International is delighted to collaborate with FTSE for the launch of our first RQFII ETF, in Hong Kong. The underlying FTSE China A50 Index is a well-recognised benchmark that reflects the performance of the A-shares market covering a wide range of industries, such as financials, health care, and telecommunications. We believe that this new ETF extends our product range, meeting investor demand for access to Chinese capital markets.”

The FTSE China A50 Index represents the 50 largest A-shares companies listed on the Shanghai and Shenzhen Stock Exchanges and is a tool used by both domestic investors and internationally in a range of QFII investment portfolios. The China Index Series is based on 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.