Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

SGX: Flourishing Growth Of China A-Share Access Products

Date 03/04/2013

The marketplace for China A-Share products is flourishing, with demand from the Asian region experiencing strong growth. In the three months since December 2012, six new China A-Share funds were launched in key Asian markets including Korea, Japan and Hong Kong.

In 2012, Exchange Traded Funds (ETFs) tracking the China A-Share market saw some of the largest inflows of any ETF sector. Total assets under management (AUM) has more than doubled over the past two years, growing from US$9.5 billion in December 2010 to over US$20 billion in December 2012. According to iShares, the leading global ETF issuer, six of the fifteen most successful new passive product launches during the year were A-share trackers, with investors allocating US$25 billion into China-related ETFs, second only to US-related funds.

SGX FTSE China A50 Index Futures, as the most liquid offshore A-share product, saw even stronger growth, with a three-fold increase in its open interest. Strong growth in open interest rollover was observed particularly during the European and US trading hours, due to the continuous overnight liquidity provided by SGX FTSE China A50 Index Futures after China’s domestic A-Share market has closed.

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