The new db X-trackers Harvest CSI300 Index UCITS ETF (DR) enables European investors to participate for the first time in the performance of the Chinese CSI300 Index via physical replication.
The ETF has been issued by Deutsche Asset & Wealth Management together with Harvest Global Investments.
The ETF provides investors with direct access to the 300 largest Chinese A-shares in terms of market capitalisation and liquidity. These equities are listed on the Shanghai and Shenzhen stock exchanges and can only be purchased by foreign investors under certain conditions. Hong Kong-based Harvest Global Investments has the required RQFII (renminbi qualified institutional investor) authorisation, which means the ETF can invest directly in A-class equities.
“We are delighted to welcome the first European CSI300 ETF with direct replication to our segment,” says Dr Martin Reck, cash market managing director at Deutsche Börse. “This ETF enhances our product range and provides new investment opportunities in China for investors who favour physical replication.”
Reinhard Bellet, head of passive asset management at DeAWM, says: “Providing investors with the first European direct investment ETF on China’s key A-shares equity benchmark is a major achievement, and can be seen as a significant step in opening up the world’s second largest economy to European investors.”
European investors’ increasing interest in the Chinese stock market is also reflected in the rising trading revenues for China ETFs on Xetra, amounting to order book turnover of EUR1.6bn last year. The number of Chinese ETFs in the segment has grown to 20 with the inclusion of the db X-trackers Harvest CSI300 Index UCITS ETF (DR). This makes Deutsche Börse the largest European exchange for ETFs on Chinese equity indices, in terms of both turnover and product range.