SSE 50ETF Raises JPY5.5 Billion In Japan

The first foreign Exchange Traded Fund (ETF), tracing the SSE 50 Index, was listed on the Osaka Securities Exchange (OSE) on October 23. The fund raised JPY5.5 billion in its IPO on October 22. Opened at JPY70,500 on October 23, the fund closed at JPY77,700, with 100,739 deals concluded and a turnover of JPY7.5 billion.

The SSE 50ETF, Japan's first ETF that traces a foreign index, is also the SSE 50 Index's first ETF abroad. It is under the management of Nomura Asset Management Co., Ltd., with the trustee of Mitsubishi UFJ Trust and Banking Corporation.

The SSE 50 Index, tracing the top fifty stocks with large scale and sufficient liquidity on the SSE, was officially launched in 2004. At present, the SSE entrusts the Index's management and maintenance to China Securities Index Co., Ltd. (CSI).

OSE President & CEO Michio Yoneda said at the listing ceremony that he is very glad that Japan's first ETF tracing an overseas index could target the SSE 50 Index. With the memorandum on cooperation signed, both the OSE and the SSE hope that the SSE 50ETF, a bridge for Japan's investment on China's stock market, can contribute to the internationalization of both China's and Japan's financial markets.

CSI President Ma Zhigang said that the SSE 50 Index, one of the most representative indices on the Shanghai stock market, had been accredited by domestic and overseas investors for its investment value. The listing of the SSE 50ETF, the SSE indices' first overseas financial product and the first foreign index ETF listing on a Japanese exchange, will facilitate Japanese investors' understanding of China's stock market. Moreover, it will strengthen the influence of China's securities market indices in Japan.

It is known that the OSE-listed ETF, tracing the SSE 50 Index, will invest through the Performance Index Note, a co-product of the SSE 50 Index constituents, instead of direct investment in the constituents. The order unit for each lot is one fund unit. The fund is traded in Japanese Yen or JPY, with Nomura Securities Co., Ltd. the authorized dealer.