CSOP Asset Management’s first RQFII ETF tops rankings from day one
The CSOP FTSE China A50 RQFII ETF is now the largest RQFII ETF.
The initial RQFII quota of RMB5bn was allocated for IPO on 28 August and was fully taken up on the same day, establishing the CSOP FTSE China A50 RQFII ETF as the largest RQFII ETF, with assets under management of USD771.1m
A further RMB2bn was granted by the State Administration of Foreign Exchange (SAFE) for release on 12 September, and creation of the units of the fund was resumed immediately.
This is the first Renminbi Qualified Foreign Institutional Investors (RQFII) ETF from CSOP Asset Management, the Hong Kong incorporated subsidiary of China Southern Asset Management.
Ding Chen, chief executive of CSOP, says: “This launch has been more successful than anticipated and demonstrates the continuing rapid growth in international demand for China-related investments. At the same time it accelerated the pace of the internationalisation of the Renminbi.”
The CSOP FTSE China A50 ETF is the first physical ETF based on the FTSE China A50 Index and offers investors the most direct channel for participation in the China Bluechip market. It marks a milestone in RQFII development, and underlines the credibility of the FTSE China A50 Index as a recognised standard for accessing the A-share market.
Jessie Pak (pictured), managing director, Asia, FTSE Group, says: “We are delighted at the success of our partnership with CSOP Asset Management and look forward to continuing to work with them. With established agreements with Shanghai and Shenzhen Stock Exchanges, and a strong track record providing optimal China index solutions, the FTSE China Index Series has become the natural choice for ETF issuers globally who wish to create China themed investment products. ”
The FTSE China A50 Index represents the 50 largest A-Share companies listed on Shanghai and Shenzhen Stock Exchanges and is tracked by both domestic investors and internationally through a range of QFII investment portfolios. The index is based on FTSE’s methodology which includes free float adjustment and liquidity screens and is managed in accordance with a clear and transparent set of index rules.
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