E Fund MSCI ETF makes IPO debut in Europe

19 May 2014   Category: News, Asia, China, Global, Hong Kong, Europe   By Hui Ching-hoo

E Fund Management (Hong Kong) has teamed up with the UK’s ETF Securities to launch the MSCI China UCITS on the London Stock Exchange, Deutsche Boerse and NYSE Euronext Amsterdam.

The product, the first UCITS ETF to track the MSCI China A Index in Europe, is designed to give investors access to a broad range of equities listed in Shanghai and Shenzhen. The ETF launches on Monday, May 19.

Ko Tseng, managing director of E Fund (Hong Kong), told Asia Asset Management that the product has been well received by institutional investors during the IPO subscription. The size of the fundraising amounts to 2 billion RMB (US$320 million).

“The investors are looking to capitalise on the theme of the inclusion of A-share equities into the MSCI emerging markets index. Plus, the A-share equities look very cheap in terms of valuation. The attractive China A-shares market is gaining much ground with global investors,” he said.

A number of Hong Kong-based, Mainland asset manager subsidiaries have initiated overseas listings. For example, CSOP Source FTSE China A50 UCITS ETF made its debut on the London Stock Exchange in January this year.