Deutsche Börse has licensed DAX to Shanghai-based fund company Fortune SG Fund Management Co to serve as the basis of the first index fund to be developed in China.
“DAX is one of the most attractive underlyings for financial products worldwide as it represents the top companies in one of Europe’s strongest economies. As a fully rules-based and objective index of leading German stocks, it provides market participants with the transparency and stability they require in an indexed investment,” says Hartmut Graf, chief executive officer, STOXX Limited.
STOXX Ltd is the marketing agent for the indices of Deutsche Börse AG and SIX, including the DAX and SMI indices. Asia is a major focus for STOXX. The most recent accomplishments in the region are the licensing of the STOXX Global 1800 Minimum Variance Unconstrained and STOXX Global 1800 ex Japan Minimum Variance Unconstrained indices to Resona Bank and the EURO STOXX 50 Hedged JPY Index to Nomura for passive funds in Japan. The STOXX ASEAN-Five Select Dividend 50 Index was also licensed to Nomura for an ETP that was listed in Tokyo in March 2014. The EURO STOXX 50 Index was licensed to Mirae Asset Global Investments for an ETF listed in Seoul in April 2014. On May 8, 2014, the Chinese version of STOXX’s brand, “STOXX 势拓” was introduced.
“Local investors’ interest in investing in overseas markets is increasing dramatically in China because high net value individual investors now need to allocate their assets on a global level. Germany is the main strength of the Eurozone’s growth so it has the potential to be a focus of Chinese investors’ attention in the future,” says Huang Xiaoyi Helen, chief executive officer, Fortune SG Fund Management Co. Ltd.
The DAX measures the development of the 30 largest and most liquid companies on the German equities market and represents around 80 percent of the market capitalisation authorised in Germany. It currently serves as the basis for more than 135,000 financial products and is one of the largest underlyings for derivatives globally. In October 2014, DAX was licensed to Recon Capital for US-listed ETF, making the index available to investors as an ETF in Europe, Asia and the U.S. for the first time.