CSOP all set to launch Treasury bond RQFII ETF

27 January 2014   Category: News, Asia, China, Hong Kong   By Hui Ching-hoo

CSOP Asset Management (CSOP), a subsidiary of China Southern Asset Management, is set to launch the Mainland’s first Treasury bond ETF under the Renminbi Qualified Foreign Institutional Investor (RQFII scheme) following the Securities and Futures Commission (SFC) giving the green light to the CSOP China 5-year Treasury Bond ETF on January 24.

The ETF is scheduled to list on the Hong Kong Stock Exchange in early February, after the Chinese New Year. As the first RQFII ETF product that invests directly into China Treasury bonds issued within the Mainland, the ETF opens up another PRC investment channel for Hong Kong and overseas investors.

The approval comes two weeks after CSOP teamed up with European ETF specialist Source to launch the CSOP Source FTSE China A50 UCITS ETF in London on January 9.

Jack Wang, managing director and head of sales of CSOP, previously told Asia Asset Management that CSOP has established itself as one of the leading RQFII ETF sponsors since its first RQFII A-share ETF was launched in July 2012. Going forward, he says the company will endeavour to cement its market share in Hong Kong.

CSOP had been awarded a total of 30.1 billion RMB (US$470 million) in RQFII quota as of the end of 2013.