Effective Thursday, the db X-trackers Harvest CSI300 Index UCITS ETF (DR) enables European investors to participate for the first time in the performance of the Chinese CSI300 Index via physical replication. The ETF was issued by Deutsche Asset & Wealth Management together with Harvest Global Investments.
The new ETF provides investors with direct access to the 300 largest Chinese A-shares in terms of market capitalisation and liquidity. These equities are listed on the Shanghai and Shenzhen stock exchanges and can only be purchased by foreign investors under certain conditions. Hong Kong-based Harvest Global Investments has the required RQFII (renminbi qualified institutional investor) authorisation, which means the ETF can invest directly in A-class equities.
“We are delighted to welcome the first European CSI300 ETF with direct replication to our segment,” said Dr Martin Reck, Cash Market Managing Director at Deutsche Börse. “This ETF enhances our product range and provides new investment opportunities in China for investors who favour physical replication.”
Reinhard Bellet, Head of Passive Asset Management at DeAWM, said, “Providing investors with the first European direct investment ETF on China’s key A-shares equity benchmark is a major achievement, and can be seen as a significant step in opening up the world’s second largest economy to European investors.”
European investors' increasing interest in the Chinese stock market is also reflected in the rising trading revenues for China ETFs on Xetra, amounting to order book turnover of €1.6 billion last year. The number of Chinese ETFs in the segment has grown to 20 with the inclusion of the db X-trackers Harvest CSI300 Index UCITS ETF (DR). This makes Deutsche Börse the largest European exchange for ETFs on Chinese equity indices, in terms of both turnover and product range.
ETF name: db X-trackers Harvest CSI300 Index UCITS ETF (DR)
ISIN: LU0875160326
Total expense ratio: 1.10 percent
Distribution policy: distributing
Fund currency: USD
Trading currency: EUR
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,040 exchange traded funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around €10 billion, makes Xetra Europe’s leading trading venue for ETFs.
Xetra® and XTF® are registered trademarks of Deutsche Börse AG.
