DeAWM and Harvest to jointly launch first RQFII product in Europe

15 November 2013   Category: News, Asia, China, Global, Europe   By Asia Asset Management

Less than two weeks after the launch of the first RQFII product in the US, Deutsche Asset & Wealth Management (DeAWM) and Harvest Global Investments Limited (Harvest) jointly announced on November 14 the approval of another unprecedented RQFII product to be launched in Europe.

DeAWM is currently managing the largest China A-Shares ETF listed in Europe providing indirect access to China A-shares. This ETF is currently managing around US$900 million of assets under management. In view of this substantial demand in China A-shares investment products, DeAWM and Harvest are providing European investors what would be the first exclusive RQFII product with access to China A-shares. European investors will be able to enjoy a direct investment opportunity into the second-largest economy of the world.

“With our expertise to manage the largest China A-shares physical ETF in the world, we are excited to expand the RQFII ETFs to the US and Europe as well,” said Peng Wah Choy, CEO of Harvest. “The successful partnership for the US RQFII product has laid a solid foundation for DeAWM and Harvest to further develop our business in Europe.”

“Hong Kong RQFII products cannot be publicly offered to US and European investors. These investors will be instrumental for the opening of the China market,” said Marco Montanari, head of passive asset management Asia Pacific of DeAWM. “This is why more than one year ago we took the strategic decision to become the leading ETF manager providing to global investors an efficient access to China.”

With a rich history of over 12 years, the European ETF market had gathered more than $380 billion in AUM, which is over twice the size of the Asia-Pacific ETF market. Out of the 1,336 ETFs listed in Europe, only 13 are focused on China. A large majority of the China ETF assets are currently invested in H-shares rather than A-shares.