The LSE has listed a fixed income ETF from Chinese investment firm Fullgoal Asset Management (HK) Limited. The Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF is the first ETF by an independent Chinese issuer in Europe.
The ETF is designed to track the FTSE China Onshore Sovereign and Policy Bank Bond Index, which is designed to reflect the performance of bonds denominated in RMB (CNY), issued by Chinese Government, China Development Bank, Agricultural Development Bank of China, The Export-Import Bank of China and circulated in mainland China.
FTSE Russell provides China-focused indexes covering all Chinese share types and a range of asset classes, including equity, fixed income and real estate. The LSE announcement writes that as China continues to open its market to foreign investors, FTSE Russell is also offering market participants a range of benchmark choices to help them prepare for the inclusion of China A-shares in global portfolios.
Fullgoal is also expected to list the Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF on Borsa Italiana later this week and further strengthens London Stock Exchange Group’s position as the partner of choice for Chinese issuers looking to access European and international capital. Earlier this month the Chinese government chose London to list the first Chinese sovereign RMB bond to be issued outside of China.
To mark the launch of this ETF, London Stock Exchange today welcomed Mr. Chen Ge, CEO of Fullgoal Fund Management Company Limited, Chairman of Board of Directors of Fullgoal Asset Management (HK) Limited to open trading in London.
Nikhil Rathi, Chief Executive of London Stock Exchange plc and Group Director of International Development says: “Chinese issuers are increasingly looking to access European investors and today’s listing is significant as it is the first time a Chinese firm has listed an ETF independently in Europe. In choosing to list this ETF, which tracks an innovative FTSE Russell index, on both London Stock Exchange and Borsa Italiana, Fullgoal have shown that LSEG is the partner of choice for Chinese issuers looking to access European investor capital”.
Michael Chow, Head of International Business and Managing Director at Fullgoal Asset Management (HK) Limited says: “We are delighted to be the first Chinese asset manager to list an ETF on London Stock Exchange. Chinese onshore fixed income market is the world’s third-largest bond market. Our Fund provides an avenue for overseas investors to access an otherwise not easily accessible market. We believe that, over time, RMB fixed income will become an essential asset class for global investors.”
