Chinese asset management firm CSOP has launched a new renminbi exchange traded fund (ETF) which tracks ChiNext, the Shenzhen Stock Exchange’s Nasdaq-style listings board.
The new ETF, which makes use of CSOP’s Renminbi Qailified Foreign Institutional Investors (RQFII) quota, allows investors access to the 100 biggest companies listed on ChiNext – typically innovative, fast-growing high tech firms – providing a new channel for portfolio diversification.
According to Jack Wang, head of institutional sales at CSOP Asset Management, the ETF will also appeal to investors looking to short the ChiNext, which has surged by over 113 per cent so far this year.
“Asset allocation demand has become more complicated, as investors are not content with having access to China, but hope to secure returns from more balanced asset categories, says Wang. “There are funds that want to go short ChiNext thinking the valuation is too high. They could do so with this ETF.”