A new exchange-traded fund from Deutsche Bank – the db X-trackers Harvest CSI 300 China A-Shares Fund ETF (ASHR) – has begun trading on the NYSE Arca.
ASHR is the first US-listed ETF to provide investors direct equity exposure to the many Chinese sectors and companies that are available exclusively via the China A-shares market, in which foreign investment has historically been limited.
“As a truly global bank, we are uniquely positioned to provide global access and perspective to US investors,” says Jerry Miller, head of asset and wealth management Americas. “Unprecedented and sophisticated products such as ASHR exemplify our strategic vision for the exchange-traded products business in the Americas.”
In order to bring the fund to market, Deutsche Asset & Wealth Management has partnered with Harvest Global Investments, a wholly owned subsidiary of Deutsche Bank Group’s asset management joint venture in China, Harvest Fund Management.
“Harvest is very pleased to collaborate with Deutsche Asset & Wealth Management to list the db X-trackers Harvest CSI 300 China A-Shares Fund on the New York Stock Exchange,” says Dr Henry Zhao, chairman of Harvest Global Investments. “ASHR will provide American investors with direct access to China A-shares with the added benefit of our depth of experience as one of the most established Chinese fund management companies.”
Harvest Fund Management is the second-largest asset management company in China, with in excess of USD47bn in assets under management. Harvest Global Investments’ status as a Renminbi Qualified Foreign Institutional Investor (RQFII) enables it to obtain a RQFII quota on behalf of ASHR.
“ASHR will provide American investors with direct access to a key international market for the first time, as other ETFs that seek to provide exposure to China A-shares must do so indirectly via derivatives or other instruments,” says Martin Kremenstein, head of passive asset management for Deutsche Asset & Wealth Management Americas. “This milestone ETF demonstrates our commitment to introducing first-of-their-kind products that use innovative strategies to fill previously unmet gaps in investor demand.”
China A-shares are equity securities issued by companies incorporated in mainland China, denominated and traded in the Chinese renminbi. Controls imposed by the Chinese government limit direct investments in A-shares, and only a very restricted pool of foreign investors have been approved as Qualified Foreign Institutional Investors or Renminbi Qualified Foreign Institutional Investors by the China Securities Regulatory Commission.
ASHR seeks to track the CSI 300 Index, which includes the 300 largest and most liquid securities trading on the Shanghai and Shenzhen Stock Exchanges.
