The CSI300 Index tracks the performance of the 300 most representative A-shares listed on the Shanghai and Shenzen stock exchanges – as measured by a combination of market capitalisation and liquidity.
db X-trackers said the ETF gets around restrictions that have traditionally made it hard for investors outside of China to access A-shares, which are quoted in RMB.
International investors must hold a qualified foreign institutional investor licence in order to trade directly in China’s A-share market, which makes up over 75% of Chinese market capitalisation and covers more than 2,000 companies across all sectors of the economy.
Manooj Mistry, head of db X-trackers for the UK, said: "The China Securities Regulatory Commission is expanding its quotas for foreign investment, signalling willingness by the Chinese government to open up China’s capital markets further to international investors. But for many investors it remains a difficult market to access. The db X-trackers CSI300 Index ETF can bridge that gap."
The fund currently has around £220m in AUM and share classes are listed on the Hong Kong and Singapore stock exchanges, with the London listing bringing it to Europe for the first time.
db X-trackers’ emerging markets range now numbers over 50 funds. This latest addition to the London range has a TER of 0.5% and has confirmed UK reporting status.