China A-shares ETF set to launch
- Deutsche on Wednesday is launching what would be U.S. ETF investors' first shot at owning so-called Chinese A shares - stocks trading in Shanghai and Shenzhen. The db X-trackers Harvest CSI 300 China A-Shares Fund ( ASHR) will track the CSI 300 Index.
- Invesco last month launched the PowerShares China A-Share portfolio ( CHNA), but until the company gets approval to own A-shares, it's trying to replicate the action with futures and other ETFs. There's also the Market Vectors China ETF ( PEK) which attempts to approximate Shanghai and Shenzhen with swaps linked to those stocks, but it's failed to gain much traction with just $34M in AUM after three years in business.
- Then there's a closed-end fund, the Morgan Stanley China A Share Fund ( CAF), currently trading at a 8.2% discount to NAV, and on the market since 2006.
- China A-shares is "the last big market access product," says Deutsche exec Martin Kremenstein, drawing a comparison to 2004's launch of the SPDR Gold Trust (GLD). MSCI estimates opening A shares completely to foreign ownership would boost China's weight in the MSCI Emerging Markets Index ( EEM) to 30% from 18%.
- Related ETFs: FXI, GXC, PGJ, FXP, HAO, CYB, YINN, CNY, TAO, CHIQ, CHIX, YANG, PEK, MCHI, XPP, CQQQ, QQQC, YAO, CHXX, CHII, CHXF, FXCH, ECNS, CHIE, YXI, CHIM, KFYP, TCHI, KWEB, FCA, CHNA.
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