First ETF from Europe-based Chinese asset manager
The Chinese fund manager GF Fund Management has launched through its European division, GF International Asset Management (UK), its first fund product, the GF International-FTSE China A UCITS ETF.
The ETF tracks the FTSE China A index, a diversified market capitalisation-weighted index offered by FTSE Russell that invests in China A-shares.
As of October 31st 2016 the index included 779 company shares traded on the Shanghai and Shenzhen stock markets. It is the first ETF to use the FTSE China A Index, which is the sub-index most likely to be included in the broad-based FTSE Emerging Market Index when the expected Chinese market inclusion decision is made.
Chuanhui Lin, CEO of GF Fund Management, announcing the launch, says: “We are delighted to be able to offer our unequalled Chinese investment expertise to international investors via our first fund available on the London Stock Exchange. This is an opportune time for both investors and GF to bring this fund to the international market.”
Miller Guo, CEO of GF International, adds: “China is the world’s second largest capital market and offers international investors rich opportunities. The first GF International ETF is a sound, transparent way to access those opportunities across a wide range of industry sectors in China.”
This ETF is the first investment product launched by a Europe-based Chinese asset manager. It gives investors access to large and mid-cap equities on the Shanghai and Shenzen stock exchanges in China via the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme.
GF International is responsible for both the ETF’s investment management and distribution, where other Chinese ETFs listed in Europe are distributed via third parties or joint-venture products.