First China A Shares ETF lists on London Stock Exchange

First China A Shares ETF lists on London Stock Exchange

  • ‘CSOP Source FTSE China A50 UCITS ETF’ starts trading on London Stock Exchange
  • New ETF linked to FTSE China A50 Index
  • Reflects growing investor demand for access to one of the world’s largest and fastest expanding economies
  • Reinforces London Stock Exchange’s position as a leading venue for ETF trading
  • FTSE is a leading provider of equity indices focused on the Chinese market

London Stock Exchange today welcomes the CSOP Source FTSE China A50 UCITS ETF to list in London. Launched in partnership by CSOP Asset Management and Source, the new ETF will, for the first time, offer both retail and institutional investors direct exposure to the China A Shares market in Europe, through an Exchange Traded Fund.

The new ETF is linked to the FTSE China A50 Index, which comprises the largest 50 A Share companies by full market capitalisation listed on the Shanghai and Shenzhen Stock Exchanges. Among the largest constituents of the index are Ping An Insurance, China Vanke and Gree Electric Appliances. FTSE is a leading provider of China-focused indices with ETFs tracking the FTSE China Index Series accounting for over $18 billion AUM, as at 31 December 2013.

The Renminbi Qualified Foreign Institutional Investor (RQFII) programme allows institutional investors with offshore Renminbi deposits to invest back into the domestic Chinese market. Hong-Kong based CSOP is currently the largest RQFII manager of A Shares globally and has been granted quota specifically for the CSOP Source FTSE China A50 UCITS ETF.

To mark the launch of this ETF, the first such exchange traded product to list in 2014, London Stock Exchange today welcomed the CEOs of CSOP Asset Management and Source to open trading in London.

Xavier Rolet, Chief Executive of London Stock Exchange Group said: “We are delighted to mark the first ETF listing of 2014 with such a ground breaking product. London Stock Exchange’s leading position as a listing venue for exchange traded products combined with FTSE’s strong track record of providing China-linked indices, positions the Group well to work with some of the largest asset management firms and ETF issuers in the world. The listing of a new China A Shares ETF will allow European investors to have direct exposure to one of the fastest growing economies and reinforces London’s position as a centre for international finance.”

Ted Hood, CEO of Source said: “Our new ETF represents a milestone for many investors, allowing them to directly access one of the world’s most important equity markets for the first time. We have seen growing demand from investors looking to increase their exposure in China and our new fund will enable this through a transparent product, publicly available to trade on London Stock Exchange.”

Chen Ding, CEO of CSOP said: “We are delighted to be partnering with Source to create a European ETF, the first that CSOP has listed on London Stock Exchange. CSOP manages RQFII allocations globally with products linked to leading benchmark indices, such as FTSE.”

The CSOP Source FTSE China A50 UCITS ETF is denominated in RMB and trades on London Stock Exchange in USD and GBP.

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Lucie Holloway +44 (0)20 7797 1222

Notes to editors:

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