FTSE announces its first RQFII ETF
29 August 2012
News, Asia, China, Global
FTSE Group, the global index provider, has announced the licensing of the FTSE China A50 Index to CSOP Asset Management Limited as the basis of its first Renminbi Qualified Foreign Institutional Investors (RQFII) ETF, which listed on Hong Kong Exchanges and Clearing Limited (HKEx) on Tuesday (August 28).
The CSOP FTSE China A50 ETF is the first cash-based ETF based on the FTSE China A50 Index. It offers investors the most direct channel to participate in the China blue chip market, marks a milestone in RQFII development, and underlines the credibility of the FTSE China A50 Index as a recognised standard route into the A-Share market, says the firm.
Jessie Pak, managing director, Asia, FTSE Group said: “We are delighted to be working with CSOP Asset Management to play a pioneering role under the RQFII scheme and to further develop investment opportunities for the China market. With established agreements with Shanghai and Shenzhen Stock Exchanges, and a strong track record providing optimal China index solutions, the FTSE China Index Series has become the natural choice for ETF issuers globally who wish to create China-themed investment products.”
Ding Chen, CEO, CSOP, said: “We are delighted to choose the FTSE China A50 as the underlying index of the CSOP FTSE China A50 ETF; this is a decision made after repeated assessment and an in-depth market research, and is also a key to the success of our IPO. The FTSE China A50 Index not only enjoys a high awareness in the market, but is also associated with a range of related financial tools for investors to choose from, such as stock index futures and other financial derivatives. Thanks to the FTSE China A50 Index, our product is very representative of the A-share market with great tradability, covering a wide range of industries, such as financials, health care, and telecommunications. We are delighted but not surprised by the full subscription of the FTSE China A50 ETF in the primary market. The heated response from investors demonstrates that the CSOP FTSE China A50 ETF indeed has a unique attraction in terms of its index representativeness, liquidity and quality.”
The FTSE China A50 Index represents the 50 largest A-Share companies listed on the Shanghai and Shenzhen Stock Exchanges and is tracked by both domestic investors and internationally through a range of QFII investment portfolios. The index is based on FTSE’s award winning methodology which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules.
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