FTSE Group (“FTSE”), the global index provider, is delighted to announce the CSOP FTSE China A50 RQFII ETF is now the largest RQFII ETF. The initial RQFII quota of 5Bn Renminbi (RMB) was allocated for IPO on 28 August and was fully taken up on the same day, establishing the CSOP FTSE China A50 RQFII ETF as the largest RQFII ETF, with Assets under Management (AUM) of US$m771.1[1] on the first day of trading. A further RMB2Bn was granted by the State Administration of Foreign Exchange (SAFE) for release on 12 September, and creation of the units of the fund was resumed immediately.
This is the first Renminbi Qualified Foreign Institutional Investors (RQFII) ETF from CSOP Asset Management Limited (“CSOP”), the Hong Kong incorporated subsidiary of China Southern Asset Management, one of the top five asset managers in China.
Ding Chen, CEO of CSOP said: “This launch has been more successful than anticipated and demonstrates the continuing rapid growth in international demand for China-related investments. At the same time it accelerated the pace of the internationalisation of the Renminbi.”
The CSOP FTSE China A50 ETF is the first physical ETF based on the FTSE China A50 Index and offers investors the most direct channel for participation in the China Bluechip market. It marks a milestone in RQFII development, and underlines the credibility of the FTSE China A50 Index as a recognised standard for accessing the A-share market. FTSE maintains a leadership position in China themed indices with over 60%[2] of assets under management in Chinese ETFs benchmarked to the FTSE China Index Series listed globally. Together with the long-established and highly successful iShares FTSE A50 China Index ETF, these two (2) ETFs account for 72.51%[3] of all A-Share ETF AUM listed in Hong Kong.
Jessie Pak, Managing Director, Asia, FTSE Group said, “We are delighted at the success of our partnership with CSOP Asset Management and look forward to continuing to work with them. With established agreements with Shanghai and Shenzhen Stock Exchanges, and a strong track record providing optimal China index solutions, the FTSE China Index Series has become the natural choice for ETF issuers globally who wish to create China themed investment products. ”
The FTSE China A50 Index represents the 50 largest A-Share companies listed on Shanghai and Shenzhen Stock Exchanges and is tracked by both domestic investors and internationally through a range of QFII investment portfolios. The index is based on FTSE’s award winning methodology which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules.
[1]Source: FTSE research report. As at w/e 31 August 2012
[2]Source: BlackRock
[3]Source: FTSE research report. As at w/e 31 August 2012
