CSOP takes first steps toward listing flagship RQFII ETF in the US

29 January 2014   Category: News, Asia, Global, USA, Europe   By Hui Ching-hoo

CSOP Asset Management is working with European ETF specialist Source to apply to the US Securities and Exchange Commission for the introduction of the CSOP Source FTSE A50 UCITS ETF. The ETF closely tracks the performance of the FTSE China A50 Index, which comprises the top 50 shares in mainland China.

The move follows the RQFII ETF making its IPO debut on the London Stock Exchange on January 9.

Jack Wang, managing director and head of sales of CSOP Asset Management, tells Asia Asset Management that the CSOP FTSE China A50 ETF will be able to trade around the clock worldwide once it is listed in the US as well as Europe.

“Unlike the institutionally dominated European market, the US ETF industry is more broadly developed, with high liquidity. The product’s design, therefore, has been customised to dovetail with the trading pattern of US ETF investors,” Mr. Wang says.

A number of Hong Kong-based RQFII ETF sponsors are looking to list their products overseas. Fore example, Harvest Global Investments has joined hands with Deutsche Asset & Wealth Management to launch db x-trackers Harvest CSI300 UCITS ETF in London.