The first exchange-traded fund tracking the A-share index launched by a foreign asset manager under China’s Renminbi Qualified Foreign Institutional Investors (RQFII) scheme has listed on the Hong Kong Stock Exchange.
The Horizons CSI 300 ETF from Mirae Asset Global Investments will offer the lowest fees among peer products in Hong Kong.
As of 26 September 2014, the management fee and ongoing charges of the Horizons CSI 300 ETF are capped at 0.25 per cent per annum and 0.49 per cent per annum respectively, the lowest among all Hong Kong-listed ETFs that also track the performance of CSI 300 Index.
Jung Ho Rhee, chief executive officer of Mirae Asset Global Investments (Hong Kong) Limited, says: “Before the launch of the RQFII scheme, most A-share ETFs in the market were synthetic ETFs because it was impossible to physically hold the underlying stocks. Now, with the opening up of China’s A-share market, investors are able to get direct exposure to China market through RQFII A-share ETFs that are able to physically replicate the composition of the underlying stock index. RQFII A-share ETFs are in the spotlight as they allow investors to access to onshore China market directly as the country’s growth story continues.”
Mirae Asset Global Investments (Hong Kong) Limited is the manager of the Horizons ETFs Series and is one of the first foreign institutions to obtain a RQFII licence and investment quota granted by the China Securities Regulatory Commission and the State Administration of Foreign Exchange of China respectively. The RQFII licence allows Mirae Asset HK to carry out investments directly in China’s Renminbi-denominated equity and fixed income markets.
The CSI 300 Index is the first equity index launched jointly by the Shanghai and Shenzhen stock exchanges. Maintained by the China Securities Index, the CSI 300 Index is a capitalisation-weighted stock index comprising 300 stocks listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.
